Alberta General Insurance Level 1 Practice Exam

Disable ads (and more) with a membership for a one time $2.99 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

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!

Practice this question and more.

What is reinsurance?

  1. A type of health insurance

  2. Insurance for personal property

  3. Insurance for insurance companies

  4. A government subsidy for insurers

The correct answer is: Insurance for insurance companies

Reinsurance is a form of insurance that is purchased by insurance companies to protect themselves against a large loss. This means that when an insurance company sells a policy to a customer, they may then purchase reinsurance to cover a portion of that risk. Reinsurance is not a type of health insurance (A) or insurance for personal property (B), as those types of insurance typically cover the individual or their property directly. It also does not refer to a government subsidy (D) for insurers, as reinsurance is a transaction between two private companies. The correct answer is C, as it accurately describes the purpose and function of reinsurance in the insurance industry.

More Questions Like This