Alberta General Insurance Level 1 Practice Exam

Which of the following is NOT a key objective of risk-based regulatory models?

1. Informed and empowered consumers

2. High system costs

3. Timely and fair claims management

4. Meaningful choice for insurance consumers

The correct answer is: High system costs

A Informed and empowered consumers is a key objective of risk-based regulatory models because it focuses on providing consumers with transparent information and education regarding risks and insurance coverage options. C: Timely and fair claims management is also a key objective as it ensures that insurance companies handle claims promptly and fairly, protecting consumers from delayed or denied claims. D: Meaningful choice for insurance consumers is an important objective as it promotes healthy competition among insurance companies, giving consumers a variety of options to choose from. B: High system costs, on the other hand, is not a key objective of risk-based regulatory models. In fact, these models aim to reduce system costs by promoting efficiency and effectiveness in regulating the insurance industry. Therefore, it is the only option listed that is not a key objective of risk-based regulatory models.