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!

Practice this question and more.

What minimum coverage of Errors and Omissions Insurance must all agents and brokers carry?

$1 million
$2 million
$3 million
$500,000

The correct answer is: $2 million

Errors and Omissions Insurance helps protect insurance agents and brokers from liability claims related to professional services they provide to clients. The minimum coverage required for agents and brokers varies by state and type of business, but $2 million is a common standard amount. Options A, C, and D are incorrect because they do not meet the minimum coverage requirement for errors and omissions insurance. Option D is significantly lower than the minimum coverage requirement and may not provide sufficient protection in the event of a claim. Option A is also lower than the recommended amount and may leave an agent or broker vulnerable to potential claims. Option C exceeds the minimum coverage requirement, but it is always better to have more coverage than the minimum required. Overall, option B is the best choice as it meets the minimum coverage requirement and provides a reasonable amount of protection.