Alberta General Insurance Level 1 Practice Exam

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Ace your Alberta General Insurance Level 1 Exam with our comprehensive practice quiz. Tailored to mimic the real test, our quiz offers detailed explanations, expert tips, and all you need to succeed. Start your path to becoming a licensed professional today!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What does unearned premium represent?

Premium for potential future claims
Premium that has been refunded
The used portion of the premium
The portion of premium not yet earned for the policy period

The correct answer is: The portion of premium not yet earned for the policy period

Unearned premium represents the portion of premium that has not yet been earned for the policy period. This means that the insurance company has not yet provided coverage for the amount of premium paid. Option A is incorrect because it refers to potential future claims, which are not related to unearned premium. Option B is also incorrect because a refunded premium implies that coverage has already been provided. Option C is incorrect because it refers to the used portion of the premium, while unearned premium represents the unused portion.