Ace the Alberta General Insurance Level 1 Exam 2025 – Insure Your Success Today!

Question: 1 / 400

What is the primary role of finance companies in insurance premium payment for commercial accounts?

To provide insurance coverage

To pay the full premium to the broker and collect from the insured

Finance companies play a crucial role in insurance premium payment by acting as a middleman between the insured and the broker. This means that the finance company pays the full premium to the broker on behalf of the insured and then collects the payment from the insured. Option A is incorrect because providing insurance coverage is the primary role of insurance companies, not finance companies. Option C is incorrect because finance companies are not intermediaries between the insured and insurer, but rather between the insured and broker. Option D is incorrect because underwriting insurance policies is the responsibility of the insurer, not finance companies.

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To act as an intermediary between the insured and insurer

To underwrite insurance policies

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