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Alberta General Insurance Level 1 Exam/Practice
Exam And Study Guide Newest 2025/2026 Complete
Questions And 100%Correct Detailed Answers
Already Graded A+|Newest Update
Actual cash value (ACV) is understood as the cost of
replacing property, less any depreciation to it. Most
insurers expand their definition to recognize that a fair
estimate of depreciation at the time of loss depends on
which of the following factors?
a) The property's physical condition
b) The property's resale value
c) The property's obsolescence
d) All of the above - ANSWER-d) All of the above
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A "mortgagee" is defined as a person or organization that
lends money to someone to buy property. The mortgagee
under a mortgage clause on a property insurance policy
has certain rights and obligations. Which of the following is
a right of the mortgagee?
a) The right to share in the loss payment, as long as the
insured owes something on the mortgage
b) The right to share in the loss payment, unless the
mortgagor neglects the property
c) The right to share in the loss payment, unless
occupation of the premises is for purposes more
hazardous than those permitted by the policy
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d) all of the above - ANSWER-a) The right to share in the
loss payment, as long as the insured owes something on
the mortgage
In anticipation of building an addition to his home, which
you insure under a homeowner package policy for
$320,000, your client purchases and stores on his
property $4,000 worth of lumber. A serious windstorm
strikes the area and your insured's lumber pile is
destroyed. What coverage would be available under your
policy?
a) None. The lumber is not yet part of the building
b) The lumber would be fully covered under Coverage A -
Dwelling Building
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c) The loss would be paid under the 10% extension of
Coverage C - Personal Property for property outside the
building
d) None. The policy excludes damage to property in the
open caused by windstorm - ANSWER-b) The lumber
would be fully covered under Coverage A - Dwelling
Building
Motorized vehicles are excluded under Coverage C -
Personal Property of a homeowner policy. Coverage is
provided as an exception to the exclusion for which of the
following?
a) Mobility Scooter
Alberta General Insurance Level 1 Exam/Practice
Exam And Study Guide Newest 2025/2026 Complete
Questions And 100%Correct Detailed Answers
Already Graded A+|Newest Update
Actual cash value (ACV) is understood as the cost of
replacing property, less any depreciation to it. Most
insurers expand their definition to recognize that a fair
estimate of depreciation at the time of loss depends on
which of the following factors?
a) The property's physical condition
b) The property's resale value
c) The property's obsolescence
d) All of the above - ANSWER-d) All of the above
,2|Page
A "mortgagee" is defined as a person or organization that
lends money to someone to buy property. The mortgagee
under a mortgage clause on a property insurance policy
has certain rights and obligations. Which of the following is
a right of the mortgagee?
a) The right to share in the loss payment, as long as the
insured owes something on the mortgage
b) The right to share in the loss payment, unless the
mortgagor neglects the property
c) The right to share in the loss payment, unless
occupation of the premises is for purposes more
hazardous than those permitted by the policy
,3|Page
d) all of the above - ANSWER-a) The right to share in the
loss payment, as long as the insured owes something on
the mortgage
In anticipation of building an addition to his home, which
you insure under a homeowner package policy for
$320,000, your client purchases and stores on his
property $4,000 worth of lumber. A serious windstorm
strikes the area and your insured's lumber pile is
destroyed. What coverage would be available under your
policy?
a) None. The lumber is not yet part of the building
b) The lumber would be fully covered under Coverage A -
Dwelling Building
, 4|Page
c) The loss would be paid under the 10% extension of
Coverage C - Personal Property for property outside the
building
d) None. The policy excludes damage to property in the
open caused by windstorm - ANSWER-b) The lumber
would be fully covered under Coverage A - Dwelling
Building
Motorized vehicles are excluded under Coverage C -
Personal Property of a homeowner policy. Coverage is
provided as an exception to the exclusion for which of the
following?
a) Mobility Scooter
