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 is earned premium?

The total premium at the start of a policy
Premium unused at the end of a policy period
The portion of premium earned for the policy period
The initial deposit for a policy

The correct answer is: The portion of premium earned for the policy period

The earned premium is the portion of the premium that has been earned, or used, during a specific period of time in an insurance policy. This means that the correct answer is not A (total premium at start of policy) or D (initial deposit for policy), as these options do not take into account the amount of premium that has been used. Option B (premium unused at end of policy period) is also incorrect because it refers to premium that has not been used, rather than premium that has been earned. Therefore, the correct answer is C, as it accurately describes the portion of premium that has been used during the policy period.