Alberta General Insurance Level 1 Practice Exam

Disable ads (and more) with a membership for a one time $4.99 payment

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!

Start Multiple Choice Practice Test
Start Flash Cards

Practice this question and more.

What is proportional reinsurance?

  1. A flat rate reinsurance contract

  2. A reinsurance contract based on flat fees

  3. A reinsurance where risk and premiums are shared proportionally

  4. A reinsurance where risk is transferred entirely

The correct answer is: A reinsurance where risk and premiums are shared proportionally

Proportional reinsurance is a type of reinsurance where the risk and premiums are shared proportionally between the insurer and the reinsurer. This means that both parties share a portion of the risk and receive a corresponding portion of the premiums. Option A and B are incorrect because they mention "flat" rates or fees, which implies a fixed amount rather than a proportional sharing of risk and premiums. Option D is incorrect because it states that the risk is transferred entirely, which is not the case in proportional reinsurance since both parties share the risk.

More Questions Like This