AIC L1 — Alberta Insurance Council - General Insurance Level 1 Exam Blueprint
Practical exam blueprint for AIC L1 candidates preparing for the Alberta Insurance Council - General Insurance Level 1 exam.
How to use this exam blueprint
Use this independent Exam Blueprint as a practical study map for the Alberta Insurance Council - General Insurance Level 1 exam, exam code AIC L1. It is designed to help you turn broad insurance content into readiness tasks: what you should know, what you should be able to apply, and where weak areas usually appear.
Because official weights can change, the areas below are presented as readiness areas, not weighted exam sections. Mark an area as ready only when you can answer scenario questions, not just define terms.
For each topic, ask:
- Can I explain the concept in plain language?
- Can I identify the relevant policy part, condition, exclusion, endorsement, or document?
- Can I decide what the broker, agent, insurer, insured, or claimant should do next?
- Can I apply the concept to a claim, underwriting, or client-advice scenario?
- Can I avoid assuming coverage without checking wording, limits, deductibles, and conditions?
Topic-area readiness table
| Readiness area | Be ready to explain | Be ready to do in a scenario | Ready when you can… |
|---|---|---|---|
| Insurance foundations | Risk, peril, hazard, loss, indemnity, pooling, insurable interest, utmost good faith | Identify why insurance exists and what type of risk is being transferred | Distinguish insurable risks from speculative or uninsurable risks |
| Legal principles | Contract basics, offer and acceptance, consideration, capacity, legality, representations, warranties, material facts | Spot misrepresentation, non-disclosure, material change, breach of condition, and waiver/estoppel issues | Explain why a policy may respond, be voided, be limited, or require escalation |
| Policy structure | Declarations, insuring agreement, definitions, exclusions, conditions, endorsements, limits, deductibles | Read a short policy fact pattern and identify what part of the policy controls the answer | Work through coverage in the correct order instead of jumping to the final payout |
| Underwriting and applications | Information gathering, risk selection, rating factors, inspections, loss history, occupancy, use, values | Decide what information is material and what must be clarified before binding or advising | Identify missing facts that change acceptability, premium, coverage, or limits |
| Licensing, ethics, and professional conduct | Role of the Alberta Insurance Council, licensed activities, authority, disclosure, confidentiality, conflicts, fair dealing | Choose the professional response when faced with client pressure, incomplete information, or a conflict | Know when to document, disclose, decline, correct, or escalate |
| Client needs analysis | Client facts, exposure identification, suitability, coverage gaps, documentation | Match coverage recommendations to property, auto, liability, and business exposures | Ask the right follow-up questions before recommending a product |
| Personal residential property | Homeowners, tenants, condo, personal property, additional living expense, detached structures, valuation | Identify coverage issues involving occupancy, water, theft, limits, special property, and endorsements | Explain how the policy may respond and what facts are still needed |
| Personal liability | Premises liability, personal activities, voluntary payments, exclusions, defence, third-party claims | Separate first-party property claims from third-party liability claims | Recognize when liability coverage may defend, indemnify, exclude, or require investigation |
| Automobile insurance concepts | Liability, injury benefits, physical damage, endorsements, use classification, drivers, vehicles, claims | Analyze auto scenarios involving use, ownership, drivers, physical damage, and third-party loss | Identify which coverage part or endorsement is likely relevant |
| Commercial property | Buildings, contents, stock, equipment, business interruption concepts, co-insurance, valuation | Evaluate losses involving values, stock, occupancy, vacancy, equipment, and income interruption | Know what additional information is needed to settle or underwrite the risk |
| Commercial liability | CGL-style concepts, premises/operations, products/completed operations, tenants legal liability, occurrence triggers | Identify whether a claim is bodily injury, property damage, personal/advertising injury, or excluded exposure | Distinguish commercial liability from auto, professional, pollution, or intentional loss issues |
| Claims handling | Notice of loss, proof, investigation, reserves, salvage, subrogation, contribution, settlement basis | Follow a claim from report to coverage decision to payment or denial | Explain the insurer’s and insured’s responsibilities after a loss |
| Calculations | Deductibles, limits, actual cash value, replacement cost, co-insurance, pro rata sharing, premium refunds | Compute a simple payment or identify the calculation step that changes the answer | Show the math and interpret what the number means |
| Documentation | Applications, binders, policies, certificates, endorsements, renewals, cancellation or change documents | Decide which document proves coverage, changes coverage, or records advice | Avoid relying on memory when a written record or endorsement is required |
Core insurance vocabulary checklist
Mark each item only when you can use it correctly in a short client or claim scenario.
Risk, loss, and coverage language
- Risk
- Pure risk vs speculative risk
- Peril
- Hazard
- Physical hazard
- Moral hazard
- Morale hazard
- Loss exposure
- Direct loss
- Indirect or consequential loss
- First-party claim
- Third-party claim
- Insurable interest
- Indemnity
- Subrogation
- Contribution
- Proximate cause
- Actual cash value
- Replacement cost
- Deductible
- Limit of insurance
- Co-insurance
- Exclusion
- Condition
- Warranty
- Endorsement
Policy and contract language
- Applicant
- Named insured
- Additional insured
- Loss payee
- Mortgagee
- Beneficiary, where applicable
- Binder
- Declaration page
- Policy wording
- Schedule
- Endorsement
- Certificate or proof of insurance
- Renewal
- Cancellation
- Non-renewal
- Lapse
- Reinstatement, if addressed in your current materials
- Material fact
- Material change
- Misrepresentation
- Non-disclosure
- Fraud
- Waiver
- Estoppel
Can you do this?
Use this as a high-value readiness check before final review.
- Given a client profile, identify the main property, liability, automobile, and business exposures.
- Given a loss scenario, identify whether it is first-party, third-party, or both.
- Given policy wording excerpts, locate the insuring agreement, definitions, exclusions, conditions, limits, and endorsements.
- Explain why a peril being present does not automatically mean the loss is covered.
- Explain why an exclusion may be modified by an exception or endorsement.
- Identify the difference between an underwriting decision and a claims decision.
- Identify when a broker or agent should avoid giving advice outside their authority or expertise.
- Decide what must be documented after a client conversation.
- Identify facts that are material to an insurer’s decision to accept, rate, renew, or cancel a risk.
- Recognize when a client’s property use has changed enough to require review.
- Apply a deductible, limit, valuation clause, and co-insurance clause in the right order based on the scenario.
- Explain subrogation in plain language after the insurer pays a covered loss.
- Explain contribution when more than one policy may apply.
- Distinguish a binder from the issued policy.
- Distinguish a quote from bound coverage.
- Identify when a certificate of insurance is evidence of coverage but does not itself rewrite the policy.
- Choose the best next step when the client gives incomplete, inconsistent, or suspicious information.
- Explain why privacy, confidentiality, and fair dealing matter in everyday insurance transactions.
Policy mechanics and document readiness
| Document or policy part | What it does | Exam-style cue | Readiness check |
|---|---|---|---|
| Application | Collects facts for underwriting and rating | Client omits prior losses, business use, renovations, drivers, values, or occupancy | Can you identify the missing or material information? |
| Quote | Indicates proposed terms, often subject to conditions | Client thinks a quote is coverage | Can you explain why quote and binder are not the same? |
| Binder | Temporary evidence of coverage when properly authorized | Coverage is needed before the policy is issued | Can you identify authority, effective date, coverage, limits, and documentation issues? |
| Declaration page | Summarizes named insured, term, limits, deductibles, property, vehicles, endorsements | A scenario gives limits or deductibles | Can you find the number that controls the answer? |
| Insuring agreement | States the basic promise of coverage | Claim either fits or does not fit the coverage grant | Can you identify the threshold coverage requirement? |
| Definitions | Gives policy-specific meanings | Ordinary meaning conflicts with defined meaning | Can you use the definition instead of assumptions? |
| Exclusions | Removes or limits coverage | Loss seems covered until an exclusion appears | Can you check exceptions, endorsements, and facts? |
| Conditions | Sets duties and requirements | Late notice, failure to protect property, material change, cooperation issue | Can you identify the duty and consequence without inventing facts? |
| Endorsement | Adds, removes, or changes coverage | Client purchased additional coverage or insurer restricted coverage | Can you apply the endorsement before finalizing the answer? |
| Certificate or proof | Provides evidence of coverage to another party | Landlord, lender, contractor, or client requests proof | Can you explain what it proves and what it does not change? |
| Renewal documents | Continue or revise coverage terms | Client assumes everything stayed the same | Can you check changed limits, deductibles, forms, endorsements, or premiums? |
| Claims documents | Record notice, proof, estimates, statements, settlement | Loss has occurred and facts are developing | Can you separate reported facts from coverage conclusions? |
Insurance foundations and legal principles
Principles you should be able to apply
| Principle | Plain-language meaning | Scenario cue | What to watch |
|---|---|---|---|
| Utmost good faith | Parties must deal honestly and disclose material facts | Client withholds loss history or true use of property | Do not treat incomplete disclosure as harmless without analyzing materiality |
| Insurable interest | The insured must have a legitimate financial interest in the subject of insurance | Someone tries to insure property they do not own or have no financial stake in | Identify who would suffer the loss |
| Indemnity | Insurance generally aims to restore, not create profit | Client expects more than the actual covered loss | Check valuation, limit, deductible, and replacement conditions |
| Subrogation | Insurer may pursue a responsible third party after paying | Another party caused the damage | Explain why the insured should not impair recovery rights |
| Contribution | Multiple policies may share a loss | Two policies appear to cover the same property or liability | Check other-insurance wording and applicable limits |
| Proximate cause | The dominant cause can affect coverage | Multiple events combine to create a loss | Identify the covered and excluded causes before deciding |
| Material fact | A fact that could affect underwriting, rating, or coverage | Occupancy, use, prior claims, protection, value, drivers, business activities | Ask whether the insurer would want to know |
| Waiver and estoppel | Conduct may affect rights or reliance | Insurer or representative acts inconsistently with strict policy rights | Do not assume; identify the conduct and reliance issue |
Contract and professional judgment checks
- Can you identify offer, acceptance, consideration, capacity, and legality in an insurance transaction?
- Can you distinguish a representation from a warranty if your study materials use both terms?
- Can you explain why misrepresentation may matter even before a claim occurs?
- Can you recognize when an insurer may need to investigate before accepting or denying a claim?
- Can you identify when a client’s new fact is a material change rather than a routine update?
- Can you explain why a policy condition can matter even when the loss itself appears covered?
Client fact-gathering checklist
Before selecting or analyzing coverage, make sure you can gather the right facts.
| Exposure type | Facts to ask about | Why it matters |
|---|---|---|
| Residential property | Ownership, occupancy, construction, updates, values, mortgage, detached structures, special property, prior losses | Affects eligibility, valuation, limits, exclusions, and endorsements |
| Tenants | Contents value, liability needs, additional living expense, high-value items, business use, roommates | Tenant exposures differ from building-owner exposures |
| Condominium | Unit improvements, contents, loss assessments, deductible assessment exposure, corporation insurance, personal liability | Condo claims often involve overlapping responsibilities |
| Automobile | Vehicle, drivers, use, territory, garaging, financing or leasing, prior claims, modifications | Affects rating, coverage, endorsements, and claim handling |
| Business property | Operations, premises, stock, equipment, values, seasonal fluctuations, income dependency, protection | Commercial losses may involve both property damage and income loss |
| Commercial liability | Operations, contracts, premises, products, completed work, subcontractors, professional services | Liability coverage depends heavily on the nature of operations |
| Claims history | Prior losses, open claims, patterns, repairs, risk improvements | Relevant to underwriting and advice |
| Special exposures | Home business, short-term rental, vacant property, renovations, high-value property, unusual vehicles | Often requires clarification, endorsement, limitation, or referral |
Personal residential property readiness
Coverage concepts to review
| Topic | Be ready to distinguish | Scenario cue |
|---|---|---|
| Homeowners vs tenants vs condo | Building coverage, contents coverage, unit improvements, personal liability, additional living expense | The insured lives in the property but may not own the whole building |
| Building vs contents | Real property, personal property, fixtures, improvements, detached structures | A loss involves appliances, flooring, fences, tools, or stored items |
| Named perils vs broad or comprehensive wording | Whether the peril must be listed or is covered unless excluded | The question says “named peril” or gives a policy form description |
| Additional living expense | Extra costs after an insured loss makes premises unusable | Client relocates temporarily after a covered loss |
| Special limits | Jewelry, money, bicycles, collectibles, business property, watercraft, or similar categories | Client assumes the full contents limit applies |
| Valuation | Actual cash value, replacement cost, agreed value, stated amount where applicable | Settlement changes depending on repair, replacement, depreciation, or limits |
| Occupancy | Owner-occupied, tenant-occupied, vacant, unoccupied, seasonal, rented, under renovation | Loss occurs after a change in use or occupancy |
| Water-related losses | Sudden escape, sewer backup, seepage, flood or overland water, freezing | Water scenarios often turn on definitions, exclusions, and endorsements |
| Theft and mysterious disappearance | Evidence of theft, property type, location, special limits | Missing property does not always equal covered theft |
| Earthquake, flood, sewer backup, bylaw, service line, identity theft | Optional or endorsement-style exposures depending on materials and policy | Client asks if “everything is covered” |
Personal property scenario prompts
Ask yourself:
- Who is the named insured?
- What property was damaged or lost?
- Where was the property located?
- Was the property owned, borrowed, rented, leased, or held for someone else?
- Is the peril covered under the form described?
- Is there a specific exclusion?
- Is there an exception to the exclusion?
- Is an endorsement relevant?
- Is a special limit lower than the general contents limit?
- Is the settlement based on actual cash value or replacement cost?
- Has the insured met post-loss duties?
- Does a deductible apply once or multiple times?
Personal liability readiness
| Topic | What to know | Scenario cue |
|---|---|---|
| Bodily injury vs property damage | Liability claims involve harm to another person or their property | Neighbour, guest, landlord, or third party demands compensation |
| Defence vs indemnity | Defence costs and settlement/payment are related but distinct concepts | Insurer must investigate or defend before final liability is clear |
| Premises liability | Occupiers may face claims from injuries on property | Slip and fall, unsafe stairs, pets, maintenance issue |
| Personal activities | Liability may arise away from the residence | Sports, accidental damage, child’s actions, recreational activities |
| Voluntary property damage or medical payments | Some policies may include limited no-fault-style payments | Insured wants to “do the right thing” without legal liability being proven |
| Business pursuits | Personal policies often treat business activities differently | Home office, paid services, rentals, delivery, side business |
| Intentional acts | Intentional injury or damage is commonly treated differently from accidents | Insured expected or intended the result |
| Contractual liability | Liability assumed by agreement may require special analysis | Client signs lease, contract, waiver, or service agreement |
Automobile insurance readiness
Study the current Alberta-specific materials assigned for AIC L1 and be ready to apply the automobile concepts they include. Avoid relying on assumptions from another province or from personal experience.
| Topic | Be ready to explain | Scenario cue |
|---|---|---|
| Third-party liability | Liability to others for injury or damage arising from automobile use | Insured driver hits another vehicle, pedestrian, structure, or property |
| Injury or accident benefits concepts | Benefits that may respond to injury depending on the policy and applicable rules | Driver or passenger is injured regardless of final liability dispute |
| Physical damage coverage | Collision, comprehensive, specified perils, all perils, or similar physical damage concepts where covered | Vehicle is stolen, hit, vandalized, damaged by weather, or damaged in a crash |
| Deductibles | Amount the insured bears before payment | Same loss amount but different deductible changes payment |
| Drivers | Listed, occasional, newly licensed, excluded, or undisclosed drivers where relevant | Claim involves someone other than the main driver |
| Vehicle use | Pleasure, commute, business, delivery, rideshare, commercial use, farm or seasonal use if relevant | Actual use differs from application |
| Ownership and financing | Owner, lessee, lender, loss payee, leased vehicle requirements | Claim payment may involve another financial interest |
| Non-owned or rented vehicles | Coverage may differ when the insured uses a vehicle they do not own | Rental car, borrowed car, employer vehicle |
| Endorsements | Changes to standard coverage, deductibles, drivers, vehicles, or use | Scenario mentions an added or removed coverage |
| Claims process | Notice, police report where applicable, estimates, fault investigation, subrogation, settlement | Client asks what to do immediately after an accident |
Automobile traps to check
- Do not assume every driver is automatically covered.
- Do not assume every vehicle use matches the application.
- Do not confuse liability coverage with physical damage coverage.
- Do not treat collision and comprehensive as interchangeable.
- Do not ignore endorsements that add, restrict, or change coverage.
- Do not assume the insurer will pay more than the vehicle’s settlement basis or applicable limit.
- Do not overlook lender, lessor, or loss payee interests.
- Do not answer Alberta automobile questions from another province’s rules unless your current AIC L1 materials direct you to compare them.
Commercial property readiness
| Topic | What to know | Scenario cue |
|---|---|---|
| Building | Structure, permanent fixtures, improvements, landlord vs tenant responsibilities | Fire, wind, collapse, vandalism, or water damage to premises |
| Business contents | Equipment, furniture, tools, stock, improvements, property of others | Loss affects items used in operations |
| Stock | Goods for sale, raw materials, finished goods, seasonal values | Inventory fluctuates or values are underreported |
| Equipment | Machinery, computers, production equipment, mobile tools | Loss affects operations, not just property value |
| Business interruption concepts | Lost income or extra expenses after covered property damage | Business closes or operates at reduced capacity |
| Extra expense | Costs incurred to reduce downtime | Temporary location, rented equipment, expedited shipping |
| Co-insurance | Requirement to insure to a percentage of value | Client underinsures building or stock |
| Valuation | ACV, replacement cost, selling price, stock valuation, stated amount where applicable | Settlement depends on how value is measured |
| Vacancy or occupancy change | Empty building, reduced operations, renovations, seasonal closure | Loss occurs when premises use changed |
| Equipment breakdown concepts | Sudden breakdown of covered equipment, separate from wear and tear | Boiler, pressure vessel, electrical, mechanical, or production equipment issue |
| Crime concepts | Employee dishonesty, theft, burglary, robbery, money and securities, forgery where covered | Money, inventory, or funds disappear |
| Inland marine or transportation concepts | Property in transit, contractors equipment, tools, installation floater where covered | Property moves away from the insured premises |
Commercial liability readiness
| Liability concept | What it tests | Scenario cue |
|---|---|---|
| Premises and operations | Injury or damage arising from business premises or ongoing operations | Customer slips, contractor damages property, operations cause harm |
| Products liability | Injury or damage caused by products | Product fails after sale |
| Completed operations | Injury or damage after work has been completed | Repair, installation, or construction later causes damage |
| Tenants legal liability | Damage to rented premises for which tenant may be legally liable | Tenant causes fire or water damage in leased space |
| Personal and advertising injury concepts | Non-physical injury categories where covered | Libel, slander, privacy, advertising-related allegations |
| Occurrence trigger | When the event causing injury or damage happens | Claim is reported later but event occurred during a policy period |
| Claims-made concepts, if covered in your materials | Coverage may depend on claim/reporting timing | Professional-style or specialty liability wording is mentioned |
| Professional liability gap | Advice, design, consultation, or professional services may need separate coverage | Client’s work involves expertise rather than only premises or operations |
| Pollution or environmental exclusions | Pollution losses are often restricted or require special coverage | Spill, contamination, fumes, cleanup costs |
| Auto exclusion | Auto-related liability may belong under auto coverage, not CGL | Business vehicle causes injury or damage |
| Intentional acts | Expected or intended harm is treated differently from accidents | Insured deliberately causes damage |
| Contractual assumptions | Liability assumed by contract may be limited or require special wording | Lease, hold-harmless agreement, service contract |
Claims analysis workflow
Use this sequence whenever a scenario asks whether a claim is covered, payable, denied, limited, or needs more information.
flowchart TD
A[Loss scenario] --> B[Identify insured and claimant]
B --> C[Identify property, vehicle, person, or liability exposure]
C --> D[Find the policy period and applicable policy]
D --> E[Check insuring agreement or covered peril]
E --> F[Check definitions]
F --> G[Check exclusions]
G --> H[Check exceptions and endorsements]
H --> I[Check conditions and post-loss duties]
I --> J[Apply valuation, limits, deductibles, and co-insurance]
J --> K[Consider subrogation, contribution, salvage, or recovery]
K --> L[Decide: pay, deny, reserve, investigate, or escalate]
Claims readiness checklist
- Can you identify the date of loss and policy period?
- Can you identify who is making the claim?
- Can you identify whether the insured is claiming for their own loss or liability to another party?
- Can you separate facts from allegations?
- Can you identify what additional facts are needed?
- Can you explain why a reservation of rights or further investigation may be appropriate in some scenarios?
- Can you identify the insured’s duties after loss?
- Can you identify when salvage may reduce the final loss?
- Can you identify when subrogation may apply?
- Can you identify when more than one policy may contribute?
- Can you explain settlement basis without promising a specific outcome unsupported by the scenario?
Calculation readiness
Calculation questions usually test both math and interpretation. Show the steps, then explain what the result means for the insured or insurer.
Actual cash value
\[ \text{Actual cash value} = \text{Replacement cost} - \text{Depreciation} \]Readiness checks:
- Can you calculate depreciation when given replacement cost and depreciation amount?
- Can you explain why actual cash value may be lower than replacement cost?
- Can you identify whether the question gives enough information to calculate ACV?
- Can you avoid assuming replacement cost applies when the scenario says ACV?
Co-insurance
\[ \text{Insurance required} = \text{Value at risk} \times \text{Co-insurance percentage} \]\[ \text{Co-insurance recovery before deductible} = \text{Loss amount} \times \frac{\text{Insurance carried}}{\text{Insurance required}} \]Readiness checks:
- Can you identify the value at risk?
- Can you identify the co-insurance percentage?
- Can you calculate the amount of insurance required?
- Can you compare insurance carried to insurance required?
- Can you determine whether a co-insurance penalty applies?
- Can you apply the policy limit and deductible after determining the covered recovery, as directed by the wording or scenario?
- Can you explain the business reason for co-insurance: discouraging underinsurance?
Deductible and limit
\[ \text{Net payment} = \min(\text{Covered loss}, \text{Policy limit}) - \text{Deductible} \]Readiness checks:
- Can you identify whether the deductible applies per occurrence, per claim, per coverage, or as described in the scenario?
- Can you identify when the policy limit caps the payment?
- Can you avoid adding the deductible on top of the limit unless the wording clearly says so?
- Can you explain the insured’s out-of-pocket portion?
Pro rata contribution
\[ \text{Insurer share} = \text{Covered loss} \times \frac{\text{Insurer limit}}{\text{Total applicable limits}} \]Readiness checks:
- Can you identify when two or more policies may apply to the same loss?
- Can you calculate each insurer’s share when limits are provided?
- Can you distinguish contribution from subrogation?
- Can you avoid double recovery by the insured?
Unearned premium concept
\[ \text{Pro rata unearned premium} = \text{Premium} \times \frac{\text{Unused policy period}}{\text{Full policy period}} \]Readiness checks:
- Can you identify earned vs unearned premium?
- Can you calculate a simple pro rata amount when dates or fractions are given?
- Can you recognize that short-rate methods may require a table or specific instruction rather than an invented formula?
- Can you explain why cancellation timing affects premium treatment?
Calculation traps
| Trap | Why candidates miss it | Safer approach |
|---|---|---|
| Applying the deductible before checking the limit | The deductible is visible and easy to subtract first | Follow the wording or scenario sequence; usually check covered loss and limit carefully |
| Ignoring co-insurance | The loss is smaller than the policy limit, so the candidate assumes full payment | Compare insurance carried to insurance required |
| Using replacement cost when ACV is stated | Candidate remembers the higher number | Use the settlement basis in the question |
| Forgetting depreciation | Replacement cost is given but ACV is requested | Subtract depreciation if the question provides it |
| Treating special limits as extra insurance | Candidate adds special limit to the contents limit | Determine whether the special limit is a sublimit |
| Missing multiple deductibles | More than one coverage or occurrence may be involved | Read whether the question describes one loss, multiple losses, or separate coverages |
| Overlooking salvage | Damaged property may still have value | Subtract or account for salvage only when the scenario instructs |
| Double-counting recovery | Contribution, subrogation, or salvage appears | Ensure the insured is indemnified, not overpaid |
Ethics, conduct, and Alberta licensing-context readiness
For the Alberta Insurance Council - General Insurance Level 1 exam, be ready to answer professional-conduct scenarios using the current Alberta materials assigned for your exam preparation. Avoid memorizing isolated phrases without understanding the decision.
| Scenario | Professional issue | Readiness question |
|---|---|---|
| Client asks you to “just bind it now” with incomplete facts | Authority, documentation, material information | Do you know what must be confirmed before coverage is represented? |
| Client wants you to omit information to lower premium | Honesty, material misrepresentation, fair dealing | Can you refuse, explain why, and document the interaction? |
| Client asks for legal, tax, engineering, or claims-settlement advice outside your role | Scope of authority and competence | Can you identify when to refer or escalate? |
| You discover an error in an application, policy, or certificate | Accuracy, correction, disclosure | Can you determine who must be informed and what must be documented? |
| Client information is requested by another party | Privacy and confidentiality | Can you identify whether consent or authority is needed? |
| A conflict of interest appears | Disclosure and client interests | Can you identify the conflict and appropriate response? |
| Premium or client funds are involved | Proper handling and accountability | Can you identify that client funds require careful handling under applicable rules? |
| A claim appears suspicious | Fraud awareness and fair treatment | Can you report concerns without making unsupported accusations? |
| Complaint or dispute arises | Professionalism and escalation | Can you identify documentation and escalation steps? |
Conduct checklist
- I can identify who my client is in a scenario.
- I can identify who I represent or what role I am acting in.
- I can explain the difference between giving information and giving unauthorized advice.
- I can identify when a client’s instruction would create an ethical problem.
- I can identify when disclosure is required before proceeding.
- I can identify when consent is needed before sharing information.
- I can document advice, recommendations, refusals, and client decisions.
- I can escalate uncertain coverage, claims, or compliance issues.
- I can avoid guaranteeing coverage before the insurer’s decision or policy wording supports it.
- I can correct a mistake instead of ignoring it.
Scenario and decision-point checks
Use these prompts to test judgment, not memory.
| Scenario cue | Likely issue | Ask yourself |
|---|---|---|
| Client forgot to mention prior claims | Material fact or misrepresentation | Would the insurer have wanted this information before accepting or rating the risk? |
| Home is no longer occupied | Occupancy, vacancy, material change | Does the change affect coverage, eligibility, or conditions? |
| Property is used for a side business | Personal vs business exposure | Is the activity covered, limited, excluded, or in need of separate coverage? |
| Expensive jewelry is stolen | Special limit or scheduled property | Is the full contents limit available? |
| Water enters the building | Peril definition and endorsement | What kind of water loss is it, and what wording applies? |
| A tenant damages the rented unit | Liability vs property coverage | Is the tenant liable, and what policy part might respond? |
| A customer slips at a business | Commercial liability | Is this premises/operations liability? |
| A product injures someone after sale | Products/completed operations | Was the injury caused by a product or completed work? |
| A contractor’s work fails | Faulty workmanship vs resulting damage | Is the claim for the work itself or resulting property damage? |
| Business closes after fire | Business interruption | Was there covered property damage causing income loss? |
| Stock values fluctuate seasonally | Underinsurance and co-insurance | Was the insured value adequate at the time of loss? |
| Vehicle used for deliveries | Auto use classification | Was the actual use disclosed and covered? |
| Driver not listed on policy | Driver eligibility and underwriting | Does the policy or endorsement address this driver? |
| Client wants proof of coverage for a landlord | Certificate or evidence of insurance | Does the certificate reflect the policy without altering it? |
| Two policies could apply | Contribution or other insurance | Which policies are triggered and how might sharing work? |
| Third party caused the loss | Subrogation | Has the insurer preserved recovery rights? |
| Claim reported late | Conditions and prejudice issues | What does the policy require, and what facts matter? |
| Insured admits intentional damage | Intentional act exclusion | Was the loss accidental from the policy perspective? |
| Client asks if “everything is covered” | Scope and limitations | Can you explain that coverage depends on wording, facts, exclusions, and endorsements? |
Common weak areas
Coverage analysis weaknesses
- Jumping straight to “covered” or “not covered” without checking the insuring agreement.
- Forgetting that definitions can change ordinary-language meanings.
- Treating all policies as if they are “all risks” or comprehensive.
- Ignoring exclusions after finding a covered peril.
- Ignoring exceptions to exclusions.
- Ignoring endorsements.
- Assuming a special limit increases coverage instead of limiting it.
- Confusing property coverage with liability coverage.
- Confusing first-party loss with third-party liability.
- Confusing insurer duties with broker or agent duties.
Client-advice weaknesses
- Recommending coverage before asking enough questions.
- Failing to identify material changes in use, occupancy, drivers, values, or operations.
- Failing to document a client’s refusal of recommended coverage.
- Saying coverage is bound when only a quote exists.
- Failing to clarify authority before binding or confirming coverage.
- Giving claims, legal, tax, or engineering conclusions beyond the facts provided.
- Overpromising claim results before adjustment is complete.
Calculation weaknesses
- Not writing down the formula.
- Using the wrong value: replacement cost, ACV, market value, or stated value.
- Forgetting the policy limit.
- Forgetting the deductible.
- Applying co-insurance only when the loss is total.
- Failing to compare insurance carried with insurance required.
- Treating premium refund methods as interchangeable.
- Not explaining what the calculation result means.
Final-week checklist
Seven-day review priorities
| Timeframe | Task | Done |
|---|---|---|
| 7 days out | Read your current AIC L1 candidate materials for updates, terminology, and Alberta-specific instructions | [ ] |
| 7 days out | Build a one-page glossary of terms you still confuse | [ ] |
| 6 days out | Review insurance principles: indemnity, insurable interest, utmost good faith, subrogation, contribution, material facts | [ ] |
| 6 days out | Drill policy structure: declarations, definitions, insuring agreement, exclusions, conditions, endorsements | [ ] |
| 5 days out | Review personal residential property and liability scenarios | [ ] |
| 5 days out | Review automobile concepts using current Alberta materials | [ ] |
| 4 days out | Review commercial property, business interruption concepts, and commercial liability | [ ] |
| 4 days out | Practice co-insurance, ACV, deductible, limit, contribution, and premium-refund calculations | [ ] |
| 3 days out | Review ethics, conduct, documentation, privacy, conflicts, and authority scenarios | [ ] |
| 3 days out | Redo missed practice questions and label each miss by cause: knowledge, wording, calculation, or judgment | [ ] |
| 2 days out | Complete a mixed timed practice set | [ ] |
| 2 days out | Review only the explanations for questions you missed or guessed | [ ] |
| 1 day out | Rehearse the claims-analysis workflow and calculation formulas | [ ] |
| 1 day out | Stop adding obscure new material; focus on accuracy and calm recall | [ ] |
Final readiness self-test
You are close to ready when you can:
- Explain insurance concepts without reading the definition.
- Apply policy wording order: coverage grant, definitions, exclusions, exceptions, conditions, endorsements, limits.
- Identify the missing fact in a scenario.
- Avoid assuming coverage based on personal experience.
- Distinguish personal, auto, and commercial exposures.
- Complete basic claim-payment calculations accurately.
- Choose an ethical and properly documented professional response.
- Review a missed question and explain exactly why the correct answer is better.
- Handle mixed-topic questions without needing the topic label first.
Practical next step
Use this Exam Blueprint to tag your weak areas, then work mixed AIC L1 practice scenarios that force you to choose the correct coverage concept, document, calculation, or professional response. Focus your next practice session on the boxes you could not confidently check today.