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 severity of loss?

  1. The time it takes to recover from a loss

  2. The average size of losses

  3. A measure of insurance policy effectiveness

  4. The impact of loss on company reputation

The correct answer is: The average size of losses

The severity of loss refers to the average size or amount of losses incurred. Option A is incorrect because it refers to the time it takes to recover from a loss, not the actual size of the loss itself. Option C is also incorrect because it refers to the effectiveness of an insurance policy, not the size of the loss. Option D is incorrect because it refers to the impact of a loss on a company's reputation, not the actual size or amount of the loss. Thus, option B is the most accurate explanation for the severity of loss.

More Questions Like This