Alberta General Insurance Level 1 Practice Exam

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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!

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What is the primary role of finance companies in insurance premium payment for commercial accounts?

To provide insurance coverage
To pay the full premium to the broker and collect from the insured
To act as an intermediary between the insured and insurer
To underwrite insurance policies

The correct answer is: To pay the full premium to the broker and collect from the insured

Finance companies play a crucial role in insurance premium payment by acting as a middleman between the insured and the broker. This means that the finance company pays the full premium to the broker on behalf of the insured and then collects the payment from the insured. Option A is incorrect because providing insurance coverage is the primary role of insurance companies, not finance companies. Option C is incorrect because finance companies are not intermediaries between the insured and insurer, but rather between the insured and broker. Option D is incorrect because underwriting insurance policies is the responsibility of the insurer, not finance companies.