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

A blanket policy is defined as a single insurance policy that provides coverage for multiple items under one limit, rather than insuring each item separately. This type of policy simplifies the insurance process by consolidating coverage, which can be particularly beneficial for businesses or individuals with numerous assets, such as inventory or a large collection of valuables. By using a blanket policy, the insured typically enjoys a more streamlined approach to managing their coverage needs, as a single limit applies to all covered items rather than having to track multiple limits for different items.

The other options do not accurately represent what a blanket policy entails. A comprehensive policy covering high-risk activities is a description that focuses on specific risks rather than multiple items. A policy that excludes all perils would not provide useful coverage and directly contradicts the purpose of a blanket policy, which is to offer broad protection. Lastly, a specific policy for personal belongings does not align with the concept of a blanket policy, as it implies limited coverage focusing on individual items rather than providing a comprehensive limit for multiple items collectively.