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!

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 retrocession in the insurance industry?

A method for calculating premiums
Claim recovery procedures
Ceding a portion of risk to another insurer
A type of policy available to consumers

The correct answer is: Ceding a portion of risk to another insurer

Retrocession in the insurance industry refers to the practice of a primary insurer ceding a portion of the risk it has assumed to another insurer. This is done through an agreement or contract between the two insurers, where the primary insurer pays a premium to the other insurer for taking on a portion of the risk. This option is incorrect because A is not the method used for calculating premiums, B is not the procedure for claim recovery, and D is not a type of policy available to consumers.