Alberta General Insurance Level 1 Practice Exam

What role do insurance intermediaries not play?

1. Underwriting policies

2. Prospecting for potential clients

3. Advising the client

4. Facilitating the claims process

The correct answer is: Underwriting policies

Insurance intermediaries, also known as insurance agents or brokers, play a crucial role in the insurance industry by connecting insurance companies with clients. They may prospect for potential clients and advise them on suitable insurance policies, as well as facilitate the claims process when necessary. However, they are not involved in underwriting policies, which is the process of evaluating and pricing insurance risks for the insurance company. This task is typically carried out by the insurance company's underwriters, not intermediaries. So, while other roles such as prospecting and advising may fall under the purview of insurance intermediaries, underwriting policies is not part of their responsibilities.