Insurance level 1 Alberta exam Latest Update 2025-2026 120 Questions and 100% Verified Correct Answers Guaranteed A+
A boiler and machinery policy provides coverage for the boiler, but may also cover?
A)mechanical and electrical equipment b)printing presses
- x-ray machines
d) all of the above - CORRECT ANSWER: All of the above
A CGL policy provides coverage for Personal and Advertising Injury. This is a named perils coverage and does NOT generally provide coverage for
A)business activities such as advertising, publishing, or broadcasting done by or for the insured b)false arrest, detention, or imprisonment
- wrongful entry into the premises that the person occupies
- oral or written publication of material that violates a person's right of privacy -
CORRECT ANSWER: business activities such as advertising, publishing, or
broadcasting done by or for the insured
A commercial building insurance form..
A)Is designed to insure commercial buildings such as office towers
b) Provides coverage for mercantile risks only
c) Provides coverage for manufacturing risks, but not industrial risks 1 / 4
d) Does not provide coverage for restaurants or bakeries - CORRECT ANSWER: Is
designed to insure commercial buildings such as office towers
A common carrier is someone who
- transports its own goods with its own vehicles
- offers his or her services for hire
- is a truck driver who owns his or her vehicle and works under contract for a carrier -
b)engages in transporting merchandise under an individual contract for a limited number of customers
CORRECT ANSWER: offers his or her services for hire
A Contractors Equipment Floater
A)subject to a rebuilding clause b)is available on an all-risk basis
- provides all-risk coverage for loss or damage to cranes or derrick booms while being
operated
d) is used to cover mechanical breakdown - CORRECT ANSWER: Is available on an
all-risk basis
A homeowner policy covers loss or damage as a result of a hostile fire. A hostile fire is
A)one which burns something intended to be burned
- a fire which is uncontrollable and accidental
- one which burns within its intended confines
- all of the above - CORRECT ANSWER: a fire which is uncontrollable and accidental
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A loss payee is someone other than the named insured who will receive proceeds under an insurance policy. Which of the following statements is TRUE respecting a loss payee?
- ifthe policy is cancelled mid-term, the insurer will provide a notice of cancellation to
the loss payee
b) If there is a transfer of interest, the loss payee must notify the insurer
c) Additional premium will be required if there is an increase in hazard and the insured
refuses to pay the additional premium
d) All of the above - CORRECT ANSWER: If the policy is cancelled mid-term, the
insurer will provide a notice of cancellation to the loss payee
A peak season endorsement
A)permits an insured to have a stable stock inventory throughout the year b)provides a high annual limit of insurance, but only charges an additional premium for six months
- provides an option for an insured to increase the limit of insurance for stock only for
- requires an insured to report stock values monthly - CORRECT ANSWER: provides
the period of time required
an option for an insured to increase the limit of insurance for stock only for the period of time required
ABC Financial Corporation hired an independent contractor to replace all the heating valves in the heat registers on their premises. While installing the new valves, a small explosion occurred which damaged the heat register, an oak desk near the register, and the computer equipment on the desk. Will the independent contractor's CGL policy provide coverage for all the property damage sustained? Why or why not? - CORRECT
ANSWER: The heat register would NOT be covered due to the property damage
exclusion stating that property being worked on by, or on behalf of, the insured is not covered if it arises out of such 3 / 4
work.The oak desk and computer equipment would be covered as it is resultant damage.
An automobile collision occurs in Hamilton, Ontario. Sarah is rear-ended while stopped at a red light. Her vehicle is seriously damaged, and it is deemed that the other driver is 100% at fault. Both automobiles are Ontario insureds, Sarah has third party liability coverage, but no physical damage insurance. How will she be reimbursed for her
damages? - CORRECT ANSWER: Sarah's own insurer will indemnify her to the degree
she is not at fault under her policy's direct compensation property damage coverage-in this case 100%.
An insured owns a building insured for $500,000. The contents are also insured for a limit of $400,000. The policy has a $5,000 per occurrence deductible. A windstorm loss occurs, damaging the roof of the building in the amount of $25,000. The contents also sustain damages in the amount of $10,000. How much will the insured recover for this loss?
A)$30,000
b)$25,000
- $20,000
d) $35,000 - CORRECT ANSWER: 30,000
An insured owns a building valued at $700,000. Their insurance policy has an 80% coinsurance requirement. The insured purchases an insurance policy with a $500,000 limit. They suffer a loss in the amount of $125,000. How much will the insured recover?
A)$125,000
b)$111,600
- $100,000
d) $89,275 - CORRECT ANSWER: 111,600
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