Page 1 of 129
ALBERTA INSURANCE LEVEL 1 EXAM 2026
BANK ALL COMPLETE (222) CURRENT
TESTING QUESTIONS AND DETAILED
CORRECT ANSWERS|GUARANTEED PASS.
ALBERTA
Prepare for the Alberta Insurance Level 1 Exam with this concise
study resource covering basic insurance principles, policy types,
regulations, and client service practices. It reinforces key
concepts required for entry-level licensing in Alberta. Suitable
for individuals pursuing a career in the insurance industry.
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
, Page 2 of 129
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
, Page 3 of 129
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?
, Page 4 of 129
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
ALBERTA INSURANCE LEVEL 1 EXAM 2026
BANK ALL COMPLETE (222) CURRENT
TESTING QUESTIONS AND DETAILED
CORRECT ANSWERS|GUARANTEED PASS.
ALBERTA
Prepare for the Alberta Insurance Level 1 Exam with this concise
study resource covering basic insurance principles, policy types,
regulations, and client service practices. It reinforces key
concepts required for entry-level licensing in Alberta. Suitable
for individuals pursuing a career in the insurance industry.
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
, Page 2 of 129
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
, Page 3 of 129
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?
, Page 4 of 129
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
