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

Question: 1 / 400

What does the "primary insurance" policy refer to?

The main insurance policy that pays first in the event of a loss

The term "primary insurance" refers to the principal policy that provides coverage for a loss. This is the insurance that pays out first when a claim is made, before any other insurance policies come into play. In situations where multiple policies may cover a loss, the primary insurance is responsible for addressing the claim up to its limits, ensuring that the insured receives support for their losses without delay.

This concept is important because it helps define the order in which various insurance policies respond to claims. Having a clear understanding of primary insurance is crucial for policyholders to effectively manage their coverage and understand when and how their insurance will activate in the event of a loss.

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A secondary policy that pays after other coverage limits are met

An insurance policy that covers only liability claims

A specialized policy for high-value items

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