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

Question: 1 / 400

What does Extended Coverage Insurance do?

Limits the coverage of the primary policy

Enlarges the coverage of the primary policy

Extended Coverage Insurance, also known as Extra Coverage Insurance or Excess Insurance, is designed to provide additional coverage beyond the limits of the primary policy. This extra coverage can protect against potential liabilities that may exceed the limits of the primary policy.

Option A is incorrect because Extended Coverage Insurance does the opposite of limiting coverage - it expands it.

Option C is incorrect because Extended Coverage Insurance can cover both commercial and personal properties.

Option D is incorrect because Extended Coverage Insurance is not typically related to life insurance benefits.

In summary, Extended Coverage Insurance provides additional coverage and should not be confused with limiting coverage, covering only commercial properties, or providing life insurance benefits.

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Covers only commercial properties

Provides life insurance benefits

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