Alberta General Insurance Level 1 Practice Exam 2025 – 400 Free Practice Questions to Pass the Exam

Question: 1 / 400

What does 'risk' refer to in insurance terms?

The premium amount

The duration of insurance coverage

A specially designed insurance product

The chance of loss or the incurring of a liability

In insurance terms, risk refers to the possibility or likelihood of experiencing loss or needing to pay for a liability. This is the fundamental concept of insurance - individuals pay a premium in exchange for protection against potential risks or financial losses. Option A, B, and C do not accurately define risk and are not used to describe risk in insurance. Overall, risk in insurance refers to the uncertainty of future events and the potential financial impact they may have.

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