Ace the Alberta General Insurance Level 1 Exam 2026 – Insure Your Success Today!

Agents/brokers are expected to act on behalf of the insurance companies within contract guidelines. This means that they have a fiduciary obligation to represent the interests of the insurance company and must adhere to the terms and conditions outlined in their contract with the company. Option A is incorrect because agents/brokers have a contractual obligation to the insurance company they represent. Option B is incorrect because agents/brokers are expected to follow the guidelines and protocols set by the insurance company, rather than relying solely on their personal judgment in risk assessment. Option D is incorrect because agents/brokers are not direct employees of the insurance company, but rather independent entities representing the company's products and services. Acting on behalf of the insurance company allows agents/brokers to provide unbiased advice and recommendations to clients.