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 would affect a contract of insurance enough to influence an insurer's decision regarding acceptance or premium setting?

Material Fact
Non-Disclosure
Misrepresentation
Confidentiality

The correct answer is: Material Fact

Material Facts play a major role in the insurance contract as they are essential information that can affect the risk and potential loss for the insurer. Non-disclosure and Misrepresentation are incorrect options as they both relate to failing to provide a complete and accurate disclosure of information, which can result in the insurer denying a claim or voiding the contract. Confidentiality is also an incorrect option as it pertains to keeping information private and does not directly affect the terms of the insurance contract. Therefore, material facts are the only option that would significantly influence an insurer's decision when determining acceptance or premium setting for a contract of insurance.