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Alberta Insurance Adjuster Licensing exam, ACTUAL
EXAM COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
Exam Overview: Content Areas Covered
Domain 1: Insurance Principles & Legal Concepts (Indemnity, Subrogation, Utmost Good Faith,
Insurable Interest).
Domain 2: The Insurance Act & Regulations (Statutory Conditions, Alberta-specific mandates,
SPFs).
Domain 3: Property Insurance (Habitational & Commercial) (Perils, Exclusions, Moral vs.
Physical Hazards).
Domain 4: Automobile Insurance (Grid System, DCPD, Section A/B/C coverage, Accident
Benefits).
Domain 5: Liability Insurance (Negligence, Tort Law, Occurrences vs. Claims-made).
Domain 6: Claims Adjusting Process (Investigation, Evaluation, Negotiation, Settlement).
Batch 1: Questions 1-100
1. Which of the following best describes the principle of indemnity in insurance?
A. The insurer pays more than the loss amount to the insured.
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B. The insured cannot profit from a loss.
C. Insurance is mandatory for all property owners.
D. Premiums are fixed regardless of risk.Answer: BRationale: The principle of indemnity aims to
return the insured to the same financial position they occupied immediately prior to the loss.
Profiting from insurance would create a moral hazard.
2. What is a deductible in an insurance policy?
A. The amount the insurer pays before coverage applies.
B. The amount subtracted from the premium.
C. The amount the insured pays out of pocket before the insurer pays.
D. The total coverage limit.Answer: CRationale: A deductible is a form of self-insurance where
the insured retains a small portion of the risk to keep premiums affordable.
3. Which of the following is an example of a peril in property insurance?
A. An oily rag left near a heater.
B. Fire.
C. A locked door.
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D. A high-crime neighborhood.Answer: BRationale: A peril is the specific cause of loss (e.g., fire,
windstorm). An oily rag is a hazard, which is a condition that increases the likelihood of a peril
occurring.
4. In Alberta, "Direct Compensation for Property Damage" (DCPD) means that:
A. You sue the other driver for your car repairs.
B. Your own insurer pays for your repairs regardless of who is at fault.
C. Your own insurer pays for your repairs to the extent you are not at fault.
D. The government pays for all hit-and-run claims.Answer: CRationale: Under DCPD, an insured
collects from their own insurer for damage to the vehicle and its contents to the extent that
another identified insured driver was at fault.
5. Under the Alberta Insurance Act, how many Statutory Conditions apply to Fire Insurance
policies?
A. 5
B. 10
C. 15
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D. 20
Answer: CRationale: There are 15 Statutory Conditions mandated by the Alberta Insurance Act
that must be printed on every fire insurance policy.
6. Which of the following defines "Subrogation"?
A. The right of the insured to cancel a policy at any time.
B. The right of the insurer to step into the shoes of the insured to recover a loss from a third
party.
C. The process of calculating depreciation.
D. A mid-term change to a policy.Answer: BRationale: Once an insurer pays a claim, subrogation
allows them to legal seek recovery from the party responsible for the damage.
7. A "Material Fact" is defined as:
A. Any fact that the insured thinks is important.
B. Information that would influence a prudent underwriter in setting the premium or accepting
the risk.
C. Any history of previous insurance claims.
Alberta Insurance Adjuster Licensing exam, ACTUAL
EXAM COMPLETE 200 QUESTIONS AND VERIFIED
SOLUTIONS LATEST UPDATE THIS YEAR
Exam Overview: Content Areas Covered
Domain 1: Insurance Principles & Legal Concepts (Indemnity, Subrogation, Utmost Good Faith,
Insurable Interest).
Domain 2: The Insurance Act & Regulations (Statutory Conditions, Alberta-specific mandates,
SPFs).
Domain 3: Property Insurance (Habitational & Commercial) (Perils, Exclusions, Moral vs.
Physical Hazards).
Domain 4: Automobile Insurance (Grid System, DCPD, Section A/B/C coverage, Accident
Benefits).
Domain 5: Liability Insurance (Negligence, Tort Law, Occurrences vs. Claims-made).
Domain 6: Claims Adjusting Process (Investigation, Evaluation, Negotiation, Settlement).
Batch 1: Questions 1-100
1. Which of the following best describes the principle of indemnity in insurance?
A. The insurer pays more than the loss amount to the insured.
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B. The insured cannot profit from a loss.
C. Insurance is mandatory for all property owners.
D. Premiums are fixed regardless of risk.Answer: BRationale: The principle of indemnity aims to
return the insured to the same financial position they occupied immediately prior to the loss.
Profiting from insurance would create a moral hazard.
2. What is a deductible in an insurance policy?
A. The amount the insurer pays before coverage applies.
B. The amount subtracted from the premium.
C. The amount the insured pays out of pocket before the insurer pays.
D. The total coverage limit.Answer: CRationale: A deductible is a form of self-insurance where
the insured retains a small portion of the risk to keep premiums affordable.
3. Which of the following is an example of a peril in property insurance?
A. An oily rag left near a heater.
B. Fire.
C. A locked door.
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D. A high-crime neighborhood.Answer: BRationale: A peril is the specific cause of loss (e.g., fire,
windstorm). An oily rag is a hazard, which is a condition that increases the likelihood of a peril
occurring.
4. In Alberta, "Direct Compensation for Property Damage" (DCPD) means that:
A. You sue the other driver for your car repairs.
B. Your own insurer pays for your repairs regardless of who is at fault.
C. Your own insurer pays for your repairs to the extent you are not at fault.
D. The government pays for all hit-and-run claims.Answer: CRationale: Under DCPD, an insured
collects from their own insurer for damage to the vehicle and its contents to the extent that
another identified insured driver was at fault.
5. Under the Alberta Insurance Act, how many Statutory Conditions apply to Fire Insurance
policies?
A. 5
B. 10
C. 15
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D. 20
Answer: CRationale: There are 15 Statutory Conditions mandated by the Alberta Insurance Act
that must be printed on every fire insurance policy.
6. Which of the following defines "Subrogation"?
A. The right of the insured to cancel a policy at any time.
B. The right of the insurer to step into the shoes of the insured to recover a loss from a third
party.
C. The process of calculating depreciation.
D. A mid-term change to a policy.Answer: BRationale: Once an insurer pays a claim, subrogation
allows them to legal seek recovery from the party responsible for the damage.
7. A "Material Fact" is defined as:
A. Any fact that the insured thinks is important.
B. Information that would influence a prudent underwriter in setting the premium or accepting
the risk.
C. Any history of previous insurance claims.
