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 risk may an applicant face for Non-Disclosure of material facts?

Higher premiums only
Having coverage voided from inception
Receiving a bonus
Getting recommended for additional policies

The correct answer is: Having coverage voided from inception

An applicant may face having their coverage voided from inception if they fail to disclose material facts. This refers to important information that an insurance company would need to know in order to properly assess the risk of insuring the individual. By not disclosing this information, the individual may receive coverage initially but could potentially have their policy cancelled later on if the undisclosed information is discovered. This is why it is important for applicants to be honest and upfront about their situation to avoid any issues with coverage in the future. The other options, such as higher premiums or receiving a bonus, do not accurately represent the potential risk an applicant may face for non-disclosure of material facts.