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!

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What is a premium in insurance terms?

The maximum amount payable in case of a claim
The document proving insurance coverage
The price of insurance protection for a specified risk for a specified period
An additional fee for insurance processing

The correct answer is: The price of insurance protection for a specified risk for a specified period

A. The maximum amount payable in case of a claim would be the policy limit, not the premium. The premium is the cost of the insurance, not the maximum claim amount. B. The document proving insurance coverage would be the insurance policy, not the premium. The premium is the cost of the insurance, not the proof of insurance. D. An additional fee for insurance processing would be referred to as the insurance processing fee, not the premium. The premium is the cost of the insurance itself.