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 the primary function of insurance?

To eliminate risk
To share and spread risk
To invest premiums
To provide employment

The correct answer is: To share and spread risk

The primary function of insurance is to share and spread risk among a large group of individuals. This helps to protect individuals and businesses from financial losses that may occur due to unexpected events. Option A ("To eliminate risk") is incorrect because insurance does not completely eliminate risk, but rather helps to mitigate it. Option C ("To invest premiums") is also incorrect because while insurance companies may invest premiums, it is not their primary function. Option D ("To provide employment") is incorrect because while employment may be a secondary outcome of insurance companies, it is not their main purpose.