Alberta General Insurance Level 1 Practice Exam

What is the purpose of the Facility Association?

1. To provide insurance to all new drivers

2. To offer educational materials on driving

3. To insure high risk drivers who may not obtain insurance otherwise

4. To track the performance of insurance companies

The correct answer is: To insure high risk drivers who may not obtain insurance otherwise

The Facility Association is a facility established to provide insurance to high risk drivers such as those with a history of accidents, traffic violations, or a lack of prior insurance coverage. Therefore, option A, which suggests providing insurance to all new drivers, is incorrect as the Facility Association specifically aims to address the needs of high risk drivers. Option B, which mentions offering educational materials on driving, is also incorrect as the Facility Association does not provide educational materials, but rather insurance coverage. Option D, which states tracking the performance of insurance companies, is also incorrect as it is not the primary purpose of the Facility Association.