ALBERTA GENERAL LEVEL 1
EXAM 2025
,Your insured, a sole proprietor, purchased a building valued at $1 million.
The insurance policy has a coinsurance clause based on the replacement cost
value of 90%. Contrary to your advice, your insured insures the building for
only $500,000. He suffers a windstorm loss totaling $150,000. How much will
the insurer pay?
a) $75,000
b) $83,333
c) $150,000
d) $93.755 - ANSWER ☑☑b) $83,333
An insured property is covered by two separate commercial policies placed
with two different insurers. Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a limit of $200,000. The insured suffers an
insurable loss of $230,000. Assuming no deductibles apply, how much will
each insurer pay?
a) Insurer A will pay $100,000. Insurer B will pay $130,000
b) Insurer A will pay $100,000, Insurer B will pay $200,000
c) Insurer A will pay $76,659. Insurer B will pay $153,341
,d) Neither insurer will pay. Two policies on the same property are
prohibited - ANSWER ☑☑c) Insurer A will pay $76,659. Insurer B will
pay $153,341
On a Commercial Building, Equipment, and Stock Form, that insures the
building owner, which of the following would not be included under the
"building" definition?
a) Growing plants and trees inside the building used for decorative
purposes
b) Building maintenance supplies
c) Fixed structures pertaining to the building
d) Temporary fixtures and fittings - ANSWER ☑☑d) Temporary fixtures
and fittings
Under a Commercial Building, Equipment, and Stock insurance policy, the
definition of "stock" includes
a) merchandise of every description usual to the insured's business,
including packing and wrapping materials
b) advertising material usual to the insured's business
c) all stock including similar property belonging to others for which the
insured is obligated to insure
d) all of the above - ANSWER ☑☑d) all of the above
, The Commercial Building, Equipment and Stock insurance policy identifies
three types of equipment for which coverage is provided. Which of the
following is NOT one of these three types?
a) Tenants' improvements and betterments if the insured does not own the
building
b) Packing materials used to ship stock
c) Property belonging to others for which the insured is legally liable
d) The contents usual to the business the insured is engaged in, other than
stock - ANSWER ☑☑b) Packing materials used to ship stock
The basic principle of business interruption insurance is
a) to arrange alternate employment for employees while the building is being
repaired following an insured loss
b) To restore the premises to the condition they were in before the loss
c) to cover the cost of relocation the business
d) to restore the income that would have been earned had the business not
been interrupted - ANSWER ☑☑d) to restore the income that would have
been earned had the business not been interrupted
On a commercial crime insurance policy, employee dishonesty insurance
EXAM 2025
,Your insured, a sole proprietor, purchased a building valued at $1 million.
The insurance policy has a coinsurance clause based on the replacement cost
value of 90%. Contrary to your advice, your insured insures the building for
only $500,000. He suffers a windstorm loss totaling $150,000. How much will
the insurer pay?
a) $75,000
b) $83,333
c) $150,000
d) $93.755 - ANSWER ☑☑b) $83,333
An insured property is covered by two separate commercial policies placed
with two different insurers. Insurer A's policy has a limit of
$100,000 and Insurer B's policy has a limit of $200,000. The insured suffers an
insurable loss of $230,000. Assuming no deductibles apply, how much will
each insurer pay?
a) Insurer A will pay $100,000. Insurer B will pay $130,000
b) Insurer A will pay $100,000, Insurer B will pay $200,000
c) Insurer A will pay $76,659. Insurer B will pay $153,341
,d) Neither insurer will pay. Two policies on the same property are
prohibited - ANSWER ☑☑c) Insurer A will pay $76,659. Insurer B will
pay $153,341
On a Commercial Building, Equipment, and Stock Form, that insures the
building owner, which of the following would not be included under the
"building" definition?
a) Growing plants and trees inside the building used for decorative
purposes
b) Building maintenance supplies
c) Fixed structures pertaining to the building
d) Temporary fixtures and fittings - ANSWER ☑☑d) Temporary fixtures
and fittings
Under a Commercial Building, Equipment, and Stock insurance policy, the
definition of "stock" includes
a) merchandise of every description usual to the insured's business,
including packing and wrapping materials
b) advertising material usual to the insured's business
c) all stock including similar property belonging to others for which the
insured is obligated to insure
d) all of the above - ANSWER ☑☑d) all of the above
, The Commercial Building, Equipment and Stock insurance policy identifies
three types of equipment for which coverage is provided. Which of the
following is NOT one of these three types?
a) Tenants' improvements and betterments if the insured does not own the
building
b) Packing materials used to ship stock
c) Property belonging to others for which the insured is legally liable
d) The contents usual to the business the insured is engaged in, other than
stock - ANSWER ☑☑b) Packing materials used to ship stock
The basic principle of business interruption insurance is
a) to arrange alternate employment for employees while the building is being
repaired following an insured loss
b) To restore the premises to the condition they were in before the loss
c) to cover the cost of relocation the business
d) to restore the income that would have been earned had the business not
been interrupted - ANSWER ☑☑d) to restore the income that would have
been earned had the business not been interrupted
On a commercial crime insurance policy, employee dishonesty insurance
