AIC L2 — Alberta Insurance Council - General Insurance Level 2 Exam Blueprint

How to Use This Exam Blueprint

Use this independent Exam Blueprint as a practical study map for the Alberta Insurance Council - General Insurance Level 2 exam, code AIC L2. It is designed for final review: identify what you can explain, what you can apply in scenarios, and what still needs targeted practice.

Because official weights can change, this checklist avoids assigning percentages or predicting section counts. Treat each area as a readiness area to review against current Alberta Insurance Council expectations, current course materials, current legislation, policy wordings, and insurer procedures.

Readiness scale

Exam identity and review focus

Topic-area readiness table

Core concepts you should be able to explain quickly

Insurance principles

Check each item only when you can define it and apply it in a scenario.

• Indemnity: the purpose is to restore, not enrich, subject to policy terms.
• Insurable interest: the insured must have a recognized financial interest in the subject of insurance.
• Utmost good faith: material facts must be disclosed truthfully.
• Material fact: a fact that could affect underwriting, pricing, acceptance, or terms.
• Proximate cause: the dominant cause connecting the peril to the loss.
• Subrogation: the insurer may pursue recovery from a responsible third party after paying a covered loss.
• Contribution: multiple policies may share a loss where coverage overlaps.
• Deductible: the insured’s retained portion, applied as the policy specifies.
• Limit of insurance: the maximum payable, subject to policy terms and sublimits.
• Exclusion: removes or narrows coverage.
• Condition: a requirement that can affect coverage or claims handling.
• Endorsement: changes the base policy wording.
• Warranty or representation: a statement or promise that may affect the insurer’s decision to insure.

Policy-reading order

Use this order during practice questions:

1. Identify the insured, location, vehicle, operation, or property.
2. Confirm the policy period and effective date of the relevant change.
3. Read the declarations for limits, deductibles, forms, and endorsements.
4. Identify the insuring agreement.
5. Check definitions.
6. Apply exclusions.
7. Apply exceptions to exclusions, if any.
8. Apply conditions, duties, valuation, deductibles, and limits.
9. Consider other insurance, subrogation, contribution, or recovery.
10. Decide what to communicate, document, or refer.

“Can you do this?” readiness checklist

Client fact-finding and suitability

• Ask enough questions to understand the client’s property, liability, automobile, and business exposures.
• Identify who must be named insured, additional insured, loss payee, mortgagee, lessor, or certificate holder.
• Separate what the client owns from what the client leases, rents, borrows, transports, stores, or is legally responsible for.
• Identify changes that require underwriting review before assuming coverage applies.
• Explain coverage differences in plain language without overstating protection.
• Recognize when a client’s requested limit appears inconsistent with values or exposure.
• Document recommendations, warnings, client decisions, and coverage declined.
• Refer technical, legal, tax, claims, or underwriting questions when outside your authority.

Coverage analysis

• Classify a loss as first-party property, third-party liability, automobile, crime, equipment breakdown, professional liability, or another line.
• Identify the named insured and who else may be protected.
• Determine whether the property or activity is within the policy’s scope.
• Recognize when an endorsement is needed to broaden, restrict, or clarify coverage.
• Explain why a certificate of insurance does not itself amend the policy.
• Identify common gaps caused by exclusions, sublimits, definitions, or conditions.
• Compare replacement cost, actual cash value, agreed value, stated amount, and market-value concepts where relevant.
• Explain why “all risks” or broad-form language does not mean every loss is covered.

Underwriting and risk quality

• Identify physical hazards, moral hazards, and morale hazards.
• Review prior losses and explain why frequency, severity, and trend matter.
• Recognize occupancy, construction, protection, and exposure issues in property risks.
• Identify driver, vehicle, use, territory, and operations issues in auto risks.
• Recognize contract, subcontractor, product, completed operations, and premises exposures in liability risks.
• Know when to pause, collect more information, and refer to underwriting.
• Avoid binding or promising coverage without authority and complete information.

Claims judgment

• Explain the insured’s immediate duties after a loss.
• Avoid admitting liability or confirming coverage before the insurer reviews the claim.
• Identify documents the insured may need to support a claim.
• Explain salvage, subrogation, and recovery in practical terms.
• Distinguish denial of coverage from incomplete information.
• Recognize potential fraud indicators without making unsupported accusations.
• Document claim communications objectively.

Regulatory, compliance, and ethics checklist

Alberta-focused review cues

Use current Alberta Insurance Council and course materials for exact requirements. For exam readiness, make sure you can work with the following without relying on memorized slogans.

Personal lines readiness checklist

Habitational property

Personal automobile

Commercial lines readiness checklist

Commercial property

Commercial general liability

Commercial automobile and fleet

Specialty lines and when to refer

Calculation and formula checks

You do not need to turn the exam into a math test, but you should be comfortable with common insurance calculations and their meaning.

Co-insurance

Know the relationship among insured value, required percentage, limit carried, loss amount, deductible, and policy limit.

\[ \text{Limit required} = \text{Insurable value} \times \text{Required coinsurance percentage} \]\[ \text{Coinsurance payment before deductible} = \left( \frac{\text{Limit carried}}{\text{Limit required}} \right) \times \text{Covered loss} \]

Then apply the deductible and policy limit as the wording requires.

Can you explain the result to a client as: “The limit was lower than the amount required by the co-insurance clause, so the insured shares part of the loss”?

Premium and return premium

Loss ratio and performance concepts

\[ \text{Loss ratio} = \frac{\text{Incurred losses}}{\text{Earned premium}} \]

Be ready to interpret the ratio, not just calculate it. A higher loss ratio may affect underwriting appetite, pricing, terms, deductibles, or renewal review.

Actual cash value and replacement cost

Scenario and decision-point checks

Practical decision path

Use this decision path when a question asks what the agent or broker should do next.

    flowchart TD
	A[Client request or new fact] --> B{Is the information complete and accurate?}
	B -- No --> C[Ask questions, correct facts, document]
	B -- Yes --> D{Within authority to advise or bind?}
	D -- No --> E[Refer to underwriter, insurer, supervisor, or specialist]
	D -- Yes --> F{Does recommendation fit the exposure?}
	F -- No --> G[Explain gap, offer options, document decision]
	F -- Yes --> H[Proceed according to procedure]
	H --> I[Confirm coverage, limits, conditions, and documentation]

Scenario cues table

Documentation artifacts to know

Common weak areas and traps

Final-week checklist

Technical review

• Re-read your current Alberta Insurance Council exam materials and course notes.
• Review current Alberta-specific terminology for licensing, conduct, and automobile insurance.
• Rebuild a one-page list of core insurance principles from memory.
• Practice reading policy excerpts in the correct order: declarations, insuring agreement, definitions, exclusions, conditions, endorsements.
• Work at least a few mixed scenarios across personal property, personal auto, commercial property, liability, commercial auto, and claims.
• Redo co-insurance, deductible, premium, return premium, and valuation calculations until the steps are automatic.
• Review the difference between first-party and third-party coverage.
• Review common specialty lines and when a risk should be referred.

Scenario judgment review

• For every scenario, identify the client, property, vehicle, operation, location, date, and requested action.
• Ask: “Is this a coverage question, underwriting question, claims question, compliance question, or documentation question?”
• Ask: “What fact would change the answer?”
• Ask: “Do I have authority to do this, or should I refer?”
• Ask: “What must be documented?”
• Avoid answers that rely on assumptions not stated in the question.
• Avoid answers that promise coverage, backdate, conceal facts, or misrepresent policy terms.

Exam-day approach

• Read every word in scenario questions, especially dates, changes, exclusions, and client instructions.
• Eliminate answers that are unethical, undocumented, outside authority, or misleading.
• Prefer answers that gather material facts before recommending or binding.
• Prefer answers that refer specialized issues rather than guessing.
• For calculations, write the structure first, then insert numbers.
• For coverage questions, identify the policy part before selecting the answer.
• If two answers seem plausible, choose the one that best protects the client, follows procedure, and accurately reflects policy terms.

Practical next step

Use this Exam Blueprint to mark each area Green, Yellow, or Red. Then focus your next practice session on Yellow and Red areas first, especially applied scenarios involving client suitability, Alberta conduct expectations, policy interpretation, commercial coverage gaps, claims communication, and insurance calculations.