AIC L3 — Alberta Insurance Council - General Insurance Level 3 Quick Reference

Last revised: June 24, 2026

Independent quick reference for candidates preparing for Alberta Insurance Council - General Insurance Level 3 (AIC L3): supervision, conduct, commercial coverage, claims, reinsurance, and insurance calculations.

Exam Identity and Quick Use

Item	Reference
Official provider	Alberta Insurance Council
Official exam title	Alberta Insurance Council - General Insurance Level 3
Official exam code	AIC L3
Page purpose	Independent exam-prep quick reference for high-yield review and practice support
Best use	Review decision rules, then apply them to timed scenario questions

Level 3 preparation should be more than memorizing policy terms. Expect scenarios that require a senior broker, agent, supervisor, or manager mindset: identify the coverage issue, recognize the conduct risk, document the advice, and choose the action that protects the client, insurer, brokerage, and public interest.

Level 3 Answer Mindset

If the question asks about…	Think first about…	Strong answer pattern
A producer’s authority	Actual, implied, apparent authority; binding limits	Confirm authority before promising coverage; document insurer confirmation
Client advice	Needs analysis, suitability, disclosure, alternatives	Ask for missing facts; explain limitations; record recommendation
Staff error	Supervision, correction, client notice, insurer notice, E&O	Mitigate harm; escalate; document; do not conceal
Premium handling	Fiduciary/trust treatment, segregation, reconciliation, remittance	Follow law, agency contract, and accounting controls
Replacement or non-renewal	Client notice, market search, coverage gaps	Communicate early; document options and consequences
Claims disagreement	Policy wording, duties after loss, coverage position, escalation	Separate advocacy from coverage determination
Conflict of interest	Compensation, relationships, dual agency, referral arrangements	Disclose, obtain informed consent where appropriate, avoid improper influence
Regulatory conduct	Licensing, advertising, privacy, complaints, records	Choose transparent, documented, compliant conduct

Alberta Regulatory and Market Conduct Reference

Use current Alberta Insurance Council materials, Alberta legislation, regulations, and bulletins for exact rule wording. For exam scenarios, focus on principle-based conduct: proper licensing, honest dealing, fair treatment, and evidence of supervision.

Concept	Exam-ready meaning	Common trap
Licensing authority	Only perform insurance activities permitted by the licence/certificate class and agency authority	“Experienced employee” does not equal authorized licensee
Holding out	Public communications must not mislead about licence status, authority, products, or insurer relationships	Using titles that imply broader authority than held
Insurer appointment or contract	Agency/brokerage authority comes from insurer contracts, binding agreements, and underwriting rules	Binding coverage outside granted authority
Actual authority	Express authority in contract, binder, underwriting manual, or direct insurer instruction	Assuming prior practice equals current authority
Implied authority	Authority reasonably necessary to carry out express authority	Extending implied authority to unusual risks or non-standard terms
Apparent authority	Authority a third party reasonably believes exists because of the principal’s conduct	Client reliance may create E&O and insurer dispute risk
Fiduciary handling of funds	Premiums and client funds require strict separation, accounting, reconciliation, and remittance controls	Using premium funds for operating expenses
Misrepresentation	False or misleading statements by client, producer, or insurer representative can affect coverage and discipline	“Small” facts can be material if they affect underwriting
Non-disclosure	Failure to disclose material facts may void or restrict coverage depending on wording and law	Completing applications from assumptions instead of client answers
Rebates and inducements	Compensation, gifts, or incentives must comply with law, insurer rules, and disclosure obligations	Treating sales incentives as harmless if not documented
Privacy	Collect, use, disclose, secure, and retain personal information only for legitimate insurance purposes	Emailing sensitive information without proper controls
Complaints	Need a process for intake, acknowledgement, investigation, response, and escalation	Ignoring oral complaints because they are not in writing
Records	Files should evidence facts gathered, advice given, options declined, notices, and binding confirmations	If it is not documented, it is difficult to prove
Continuing obligations	Renewal, continuing education, licence maintenance, and disclosure obligations continue after licensing	Treating compliance as an annual-only task
Discipline risk	Misconduct may involve client harm, dishonesty, incompetence, failure to supervise, or non-cooperation	Fixing the client problem does not erase the conduct issue

Brokerage and Agency Management Controls

Level 3 scenarios often reward the answer that adds supervision, systems, and documentation, not only the answer that fixes one file.

Control area	What strong management looks like	Exam cue
Licensing roster	Track active licences, classes, restrictions, renewals, CE, and roles	New hire, leave of absence, delegated tasks
Authority register	Maintain insurer binding limits, prohibited classes, referral rules, and underwriting contacts	Producer wants to bind unusual risk
File audit	Review applications, notes, coverage comparisons, binders, renewals, and E&O-sensitive files	Repeated missing documentation
Trust/premium accounting	Segregation, reconciliation, aged receivables, remittance, refund controls	Premium collected but not remitted
Renewal diary	Advance notice, remarketing triggers, non-renewal handling, client follow-up	Client missed renewal deadline
Binder log	Track oral/written binders, effective dates, subjectivities, confirmations, and expiries	Coverage promised before insurer approval
Complaint register	Log issue, owner, timeline, evidence, outcome, corrective action	Client alleges bad advice
Privacy program	Consent, access control, secure transmission, retention/destruction, breach escalation	Lost laptop or misdirected email
Training program	Product knowledge, ethics, conduct, workflows, escalation rules	Junior staff handling complex commercial account
E&O risk management	Timely reporting, no admissions without advice, file preservation	Possible coverage gap caused by staff

Supervision Decision Rule

Situation	Poor Level 3 response	Better Level 3 response
Junior employee gives incorrect coverage advice	Correct the employee only	Contact client, correct advice, assess harm, notify insurer/E&O if needed, document, train
Producer binds outside authority	Hope insurer accepts it	Escalate immediately, notify insurer, protect client position, review authority controls
Client refuses recommended coverage	Delete coverage silently	Explain consequences, obtain written acknowledgement, document alternatives
Insurer declines renewal	Wait for client to call	Notify client promptly, market alternatives, explain gaps and deadlines
Repeated file deficiencies	Blame workload	Audit, identify root cause, retrain, adjust workflow, monitor compliance

Client File Workflow

    flowchart TD
	    A[Gather facts] --> B[Identify exposures]
	    B --> C[Match coverage options]
	    C --> D[Explain limits, exclusions, deductibles, conditions]
	    D --> E{Client accepts?}
	    E -->|Yes| F[Bind within authority and confirm in writing]
	    E -->|No| G[Document declination and consequences]
	    F --> H[Deliver documents and diary follow-up]
	    G --> H
	    H --> I[Review at renewal or material change]

File stage	Evidence to create	Common exam issue
New business	Applications, exposure notes, prior insurance, loss history, coverage comparison	Application completed without client verification
Quotation	Markets approached, options, conditions, subjectivities, quote expiry	Quote confused with bound coverage
Binding	Effective date/time, insurer, limits, deductibles, endorsements, conditions	Verbal binder not confirmed
Policy review	Compare policy to binder and application	Policy issued with incorrect named insured or limit
Mid-term change	Client instruction, underwriting approval, endorsement request, confirmation	Coverage assumed before insurer approval
Renewal	Updated exposures, claims, changes in operations, remarketing decision	Automatic renewal despite changed risk
Cancellation/non-renewal	Reason, notice, effective date, alternatives, premium accounting	Client left uninsured without clear warning
Claim	Date of loss, notice to insurer, coverage issues, client duties, adjuster contacts	Producer admits liability or coverage

Policy Architecture and Wording Traps

Policy part	What it does	Level 3 trap
Declarations	Identifies insured, policy period, premises, limits, deductibles, forms	Wrong named insured can defeat coverage
Insuring agreement	Grants coverage; usually the starting point	Do not start with exclusions before confirming grant
Definitions	Controls meaning of key terms	Ordinary meaning may be overridden by defined wording
Exclusions	Remove coverage that may otherwise be granted	Some exclusions have exceptions that restore coverage
Conditions	Duties and rules for coverage, claims, changes, cancellation	Breach may prejudice coverage
Warranties	Strict promises about risk facts or conduct	Breach may have severe consequences
Endorsements	Add, restrict, or amend coverage	Latest endorsement can override base wording
Statutory conditions	Required conditions for certain classes/coverages	Do not ignore because they are not emphasized in scenario
Deductibles and self-insured retentions	Allocate first layer of loss	SIR may require insured to handle/finance defence obligations
Limits and aggregates	Cap insurer payment	Aggregate exhaustion is a major liability-policy issue

Interpreting a Coverage Scenario

Identify the named insured and any additional insureds.
Confirm policy period and retroactive date if claims-made.
Identify the loss trigger: occurrence, accident, claim made, discovery, or reporting.
Find the insuring agreement.
Apply definitions.
Apply exclusions and exceptions.
Apply conditions, warranties, deductibles, limits, and other insurance clauses.
Consider endorsements.
Separate coverage analysis from claims-handling conduct.

Commercial Property Reference

Topic	Exam-ready distinction	Watch for
Named perils	Covers only listed perils	Client assumes “insurance” means all causes
Broad/all risks wording	Covers direct physical loss unless excluded	“All risks” does not mean every loss
Building	Structure and attached property	Tenant improvements may need separate treatment
Contents	Business personal property	Property of others may have sublimits or conditions
Stock	Merchandise, raw materials, finished goods	Valuation may fluctuate seasonally
Equipment	Machinery, tools, fixtures	Breakdown may need separate equipment breakdown coverage
Tenants improvements	Improvements paid for by tenant	Lease may determine responsibility
Property of others	Client may have legal or contractual responsibility	Bailee exposure may require special wording
Off-premises property	Property away from described location	Sublimits, territory, and transit conditions matter
Newly acquired property	Temporary automatic coverage may apply	Diary expiry and report values
Debris removal	Cost to remove damaged property	Often limited; pollution debris may differ
Bylaws/ordinance	Increased cost due to building code	Standard property wording may not fully respond
Vacancy/unoccupancy	Increased hazard condition	Material change and vacancy clauses are high-yield
Protective safeguards	Alarms, sprinklers, security promises	Warranty/condition breach risk
Earthquake/flood/sewer backup	Often excluded or specially endorsed	Do not assume water coverage is uniform
Equipment breakdown	Sudden accidental breakdown of insured equipment	Not the same as wear and tear or maintenance

Property Valuation

Valuation basis	Meaning	Best exam cue
Actual cash value	Replacement cost less depreciation or market-based value depending on wording/context	Older property, no replacement cost endorsement
Replacement cost	Cost to repair/replace with like kind and quality, usually subject to conditions	Insured must actually repair/replace within required terms
Selling price	Finished stock valued at selling price less unincurred expenses	Manufacturer or retailer stock loss
Agreed value	Insurer and insured agree to value method or amount	Reduces valuation dispute but does not remove all conditions
Stated amount	Maximum or scheduled amount; not necessarily guaranteed value	Client confuses stated amount with agreed value

Business Interruption and Extra Expense

Concept	Meaning	Common trap
Business interruption	Covers loss of income due to insured physical damage causing interruption	No covered property damage means no BI trigger unless wording says otherwise
Gross earnings/gross profits	Formula-based income coverage depending on wording	Accounting terms are policy-defined, not generic
Indemnity period	Period during which loss is measured	May not equal time to rebuild if customers do not return
Waiting period	Time deductible	Often expressed in hours or days
Extra expense	Reasonable additional costs to reduce loss or continue operations	Must be necessary and tied to covered interruption
Ordinary payroll	Payroll treatment varies by form	Major exposure for service businesses
Contingent BI	Loss due to damage at supplier/customer/dependent property	Requires specific extension and covered peril
Civil authority	Access prohibited by authority due to covered cause nearby	Mere reduced traffic may not be enough
Ingress/egress	Access impaired even without damage at insured premises	Wording-specific trigger
Period of restoration	Time reasonably needed to repair/replace	Delays from financing, permits, or upgrades may be limited
Co-insurance in BI	Penalty if limit inadequate	Sales trend and seasonal values matter

Liability Coverage Reference

Coverage issue	Key distinction	Exam cue
Bodily injury/property damage liability	Third-party injury or damage caused by insured’s operations/products/premises	Slip and fall, fire spread, defective work damage
Occurrence trigger	Event during policy period causes injury/damage	Claim may be reported later
Claims-made trigger	Claim first made, and sometimes reported, during policy period	Retroactive date and extended reporting period matter
Duty to defend	Insurer may defend allegations potentially within coverage	Defence can apply even if claim later proves uncovered
Duty to indemnify	Obligation to pay covered damages	Narrower than duty to defend
Products-completed operations	Liability after product sold or work completed	Contractor and manufacturer exposure
Premises liability	Ownership/occupancy/control of premises	Snow removal, maintenance, security
Tenants legal liability	Damage to premises rented/occupied by insured	Fire damage to leased unit
Contractual liability	Liability assumed under contract	Hold harmless clauses may exceed insurance
Professional liability/E&O	Negligent professional advice or services	CGL usually not enough for advice-based work
Directors and officers	Management liability for wrongful acts	Entity vs individual coverage issues
Employment practices	Wrongful dismissal, harassment, discrimination allegations	Not standard CGL bodily injury
Cyber liability	Privacy breach, network security, data restoration, cyber extortion	Property and CGL gaps are common
Pollution liability	Environmental release, cleanup, third-party claims	Standard exclusions are significant
Umbrella/excess	Additional limits above underlying policies	Follow-form vs broader umbrella matters
Aggregate limit	Maximum over policy period	Multiple claims can exhaust protection

Claims-Made Checklist

Item	Why it matters
Retroactive date	Acts before this date may be excluded
Prior and pending litigation date	Known disputes may be excluded
Claim definition	Demand, suit, regulatory proceeding, notice of circumstance may differ
Reporting requirement	Some forms require claim made and reported in the policy period
Extended reporting period	Allows reporting after expiry, not new acts after expiry
Continuity	Gaps between policies can create uninsured claims
Consent to settle	Insured refusal may affect insurer obligation
Defence costs	May be inside or outside limits depending on wording

Automobile and Fleet Reference

Confirm current Alberta forms and endorsements in the materials you are using. For exam purposes, understand purpose, not just form numbers.

Form or endorsement	Core use	High-yield issue
SPF 1 Owner’s Automobile Policy	Standard owner’s automobile coverage	Named insured, described automobile, drivers, use, territory, exclusions
SPF 4 Garage Automobile Policy	Garage operations involving customers’ vehicles and dealer/service risks	Difference between owned, customers’, and garage operations exposures
SPF 6 Non-Owned Automobile Policy	Liability for employer/business exposure from vehicles not owned by insured	Employees using personal vehicles for business
SEF 20 Loss of Use	Transportation replacement costs after insured loss	Subject to coverage trigger and limits
SEF 27 Legal Liability for Damage to Non-Owned Automobiles	Physical damage liability for certain non-owned vehicles	Rental vehicles and contractual assumptions
SEF 44 Family Protection	Protection against inadequately insured at-fault motorists	Must coordinate with auto policy conditions
SEF 19 Limitation of Amount	Limits recovery to stated value	Client may expect replacement cost
SEF 43R Limited Waiver of Depreciation	Waives depreciation for eligible newer vehicles subject to terms	Time, vehicle eligibility, and wording restrictions

Fleet Underwriting Cues

Exposure	Underwriting information to seek
Drivers	Abstracts, age/experience, training, turnover, disciplinary controls
Vehicles	Type, value, radius, garaging, maintenance, ownership/lease
Use	Delivery, passenger transport, hazardous goods, seasonal use
Territory	Urban/rural, interprovincial, cross-border, radius
Cargo	Owned goods vs goods of others, temperature control, theft attractiveness
Contracts	Additional insured, waiver, indemnity, cargo limits required
Loss control	Telematics, driver policy, maintenance logs, incident review
Claims	Frequency vs severity, preventability, trend, reserve development

Surety, Crime, and Specialty Lines

Line	What it is	Not the same as	Exam trap
Contract surety	Surety guarantees principal’s contract obligation to obligee	Insurance for principal’s own loss	Surety expects indemnity from principal
Bid bond	Supports contractor’s bid commitment	Performance bond	Usually connected to tender process
Performance bond	Guarantees completion/performance	Warranty of perfect work	Surety may finance, replace, or settle
Labour and material payment bond	Protects eligible subcontractors/suppliers	General liability	Claimants and notice rules matter
Commercial surety	Guarantees statutory, court, fiduciary, or licence obligations	Casualty insurance	Underwriting focuses on character, capacity, capital
Crime insurance	Employee dishonesty, theft, forgery, computer fraud depending on wording	Cyber insurance	Discovery period and employee definition matter
Fiduciary liability	Administration of benefit plans	D&O or E&O	Benefit plan decisions may be excluded elsewhere
Builders risk	Property under construction	Contractor CGL	Soft costs, delay, testing, occupancy, and handover issues
Wrap-up liability	Project-specific liability covering multiple participants	Individual contractor CGL only	Completed operations and enrolled parties
Marine/cargo	Transit and marine-related property exposures	Standard property extension	Incoterms, valuation, conveyance, and territory
Equipment breakdown	Breakdown of pressure, mechanical, electrical equipment	Wear and tear coverage	Consequential BI may need endorsement
Environmental liability	Pollution cleanup and third-party environmental claims	Standard CGL	Gradual pollution and regulatory cleanup are key gaps
Cyber	Data breach, privacy, network interruption, cybercrime	Crime or property alone	Social engineering may need specific coverage

Reinsurance and Insurer Risk Transfer

Concept	Meaning	When chosen
Reinsurance	Insurance purchased by an insurer to transfer part of its risk	Capacity, catastrophe protection, stabilization
Ceding insurer	Insurer that transfers risk	Wants capital relief or volatility control
Reinsurer	Assumes risk from ceding insurer	Prices portfolio or individual risk
Retention	Amount insurer keeps net	Higher retention means more volatility retained
Facultative reinsurance	Reinsurance for an individual risk	Large, unusual, or hazardous account
Treaty reinsurance	Reinsurance for a class/portfolio	Automatic capacity for defined business
Pro rata/quota share	Reinsurer shares premiums and losses by percentage	Growth, capacity, portfolio sharing
Surplus share	Reinsurer takes amount above insurer retention up to treaty limit	Larger policies with variable sums insured
Excess of loss	Reinsurer pays losses above retention up to limit	Severity or catastrophe protection
Catastrophe excess	Protects against accumulation from one event	Earthquake, hail, wildfire, flood accumulation
Ceding commission	Reinsurer allowance to ceding insurer for acquisition/admin costs	Pro rata treaties
Reinstatement	Restores exhausted reinsurance limit, often for additional premium	Catastrophe programs
Fronting	Licensed insurer issues policy while transferring most risk	Requires attention to credit and control risk

Underwriting, Pricing, and Portfolio Measures

Measure	Plain formula	Interpretation
Written premium	Premium booked for policies written	Production volume, not fully earned yet
Earned premium	Written premium recognized over elapsed policy period	Used with incurred losses
Incurred losses	Paid losses plus reserves, adjusted for recoveries depending on basis	Better than paid-only for profitability
Loss ratio	Incurred losses / earned premium	Claims cost relative to earned premium
Expense ratio	Underwriting expenses / premium base used by insurer	Acquisition and operating cost load
Combined ratio	Loss ratio + expense ratio	Below 100% indicates underwriting profit before investment income
Rate adequacy	Premium sufficient for expected losses, expenses, profit/risk load	Hard-market driver
Frequency	Number of claims per exposure	Often managed by loss control/deductibles
Severity	Average cost per claim	Often managed by limits, underwriting, reinsurance
Retention	Insured’s deductible/SIR or insurer’s net retained risk	Aligns incentives and controls small losses
Adverse selection	Higher-risk insureds more likely to buy/keep coverage	Underwriting and pricing must counter it
Moral hazard	Behaviour changes because insurance exists	Deductibles, conditions, inspections
Morale hazard	Carelessness or indifference to loss	Loss control and underwriting judgment

Core Calculation Formulas

\[ \text{Earned premium} = \text{written premium} \times \frac{\text{expired policy days}}{\text{policy term days}} \]\[ \text{Loss ratio} = \frac{\text{incurred losses}}{\text{earned premium}} \]\[ \text{Combined ratio} = \text{loss ratio} + \text{expense ratio} \]\[ \text{Insurance required} = \text{property value} \times \text{co-insurance percentage} \]\[ \text{Co-insurance recovery before deductible} = \min(\text{loss}, \text{limit}) \times \frac{\text{insurance carried}}{\text{insurance required}} \]\[ \text{Premium} = \text{exposure units} \times \text{rate} \times \text{modification factors} \]

Calculation traps:

Use earned premium with incurred losses for loss ratio.
Apply the policy wording for deductible and co-insurance order.
Co-insurance does not increase the policy limit.
A low combined ratio is favourable; a high loss ratio may still be acceptable if expenses are low and pricing strategy supports it.
Do not confuse insurer retention with insured deductible.

Claims Handling and Coverage Disputes

Claims step	Key action	Level 3 issue
First notice of loss	Record facts, date, contact details, immediate needs	Late notice and incomplete facts
Acknowledge duties	Tell insured to protect property, cooperate, preserve evidence, avoid unauthorized admissions	Producer must not adjust beyond role
Notify insurer	Promptly report according to policy and agency procedures	Delay can prejudice coverage
Coverage review	Compare facts to wording, endorsements, conditions	Do not promise coverage before insurer position
Reservation of rights	Insurer may investigate while preserving coverage defences	Not the same as denial
Proof of loss	Formal sworn claim document where required	Deadlines and accuracy matter
Investigation	Cause, amount, liability, damages, fraud indicators	Bias or incomplete investigation creates conduct risk
Reserves	Estimate expected claim cost	Reserve changes do not equal admission
Defence	Liability insurer may appoint defence counsel	Conflict may require separate counsel consideration
Settlement	Must align with coverage, liability, damages, authority	Unauthorized settlement can breach conditions
Subrogation	Insurer seeks recovery from responsible third party after payment	Insured must preserve rights
Salvage	Insurer may recover value from damaged property	Ownership and valuation issues
Complaint/escalation	Use internal and regulatory complaint process as required	Poor communication can become separate misconduct

Ethics and Professional Judgment

Scenario	Correct instinct
Client asks to backdate coverage	Refuse; explain fraud/misrepresentation risk; document and escalate if needed
Client omits material information	Do not submit as-is; obtain accurate information or decline to proceed
Producer discovers application error after binding	Notify insurer, correct file, inform client of impact
Insurer offers higher commission product	Recommend based on client needs; disclose conflicts where required
Client cannot afford recommended coverage	Explain risk and alternatives; document declination
Friend or related business seeks special treatment	Apply same underwriting, disclosure, and documentation standards
Claim may be excluded	Assist with reporting, but do not guarantee coverage
Staff member lacks licence for task	Reassign to licensed person or supervise only where legally permitted
Client wants minimum premium only	Explain coverage consequences, not just price
Market unavailable	Document markets approached, alternatives, risk improvements, and residual options if applicable

High-Yield Distinctions

Distinction	Testable point
Broker/agent advice vs insurer underwriting	Producer advises and submits; insurer accepts, declines, or sets terms
Quote vs binder	Quote is an offer/estimate; binder is temporary evidence of coverage if validly authorized
Binder vs policy	Binder is temporary; policy wording ultimately governs subject to legal principles
Warranty vs representation	Warranty is usually stricter; representation may require materiality analysis
Material change vs ordinary change	Material change affects risk and must be disclosed according to policy/law
Vacancy vs unoccupancy	Vacancy usually implies no occupant/contents/use; unoccupancy may be temporary absence
Replacement cost vs market value	Replacement cost is repair/replace cost; market value is sale value
ACV vs depreciation waiver	ACV accounts for depreciation; waiver endorsement may restrict depreciation for eligible auto losses
Occurrence vs claims-made	Occurrence focuses on event date; claims-made focuses on claim/report date
Deductible vs SIR	Deductible often paid/reimbursed after insurer involvement; SIR may be retained and handled by insured before insurer responds
Excess vs umbrella	Excess may follow underlying wording; umbrella may provide broader coverage subject to terms
Surety vs insurance	Surety expects principal reimbursement; insurance spreads fortuitous loss
Indemnity vs valued policy	Indemnity restores financial position; valued approach may pre-agree amount subject to wording
Direct loss vs consequential loss	Physical damage vs resulting income/extra expense loss
Moral hazard vs morale hazard	Intentional incentive problem vs carelessness/indifference

Scenario Selection Matrix

Facts in question	Likely best answer
Commercial client changed operations	Treat as material risk change; update underwriting and coverage
Client signs lease with insurance requirements	Compare contract to policies; identify gaps; do not assume compliance
Contractor starts new project type	Review CGL, builders risk, wrap-up, bonds, professional exposure
Business stores customer property	Review property of others, bailee, legal liability, limits
Manufacturer imports products	Review products liability, territory, vendors, recall, contractual requirements
Company uses employee vehicles	Review SPF 6/non-owned auto and driver controls
New cyber exposure appears	Do not rely on CGL/property; consider cyber and crime gaps
Large property value increase	Reassess limits, co-insurance, inflation, appraisal
Several small claims	Analyze frequency, deductibles, loss control, marketability
One catastrophic exposure	Analyze severity, limits, umbrella/excess, reinsurance/insurer capacity
Producer lacks binding authority	Submit to insurer; do not bind or imply coverage
File has no notes	Reconstruct facts, improve process, recognize E&O weakness
Client disputes premium finance/cancellation	Review notices, authority, accounting, and client communications
Policy issued differently from binder	Escalate immediately; correct or explain discrepancy
Claim denied for exclusion	Verify wording, facts, endorsements, and appeal/escalation options

Last-Week Review Checklist

Know the difference between advice, underwriting, binding, issuing, and adjusting.
Review Alberta market conduct principles: licensing, honesty, disclosure, privacy, complaints, records, and premium handling.
Practice coverage analysis in order: grant, definitions, exclusions, conditions, endorsements, limits.
Memorize the purpose of common auto forms and endorsements, but rely on wording for the final answer.
Drill commercial property valuation, co-insurance, business interruption, and liability triggers.
Separate occurrence and claims-made logic.
Review surety relationships: principal, obligee, surety.
Understand reinsurance types and why insurers use them.
Practise management scenarios: supervision, file audits, complaints, staff errors, and E&O escalation.
For every scenario, ask: What facts are missing? Who must be notified? What must be documented?

Next Step

Use this Quick Reference as a checklist, then complete mixed AIC L3 practice scenarios under timed conditions. After each question, write the rule you applied, the conduct issue you spotted, and the file note that should exist.

Scenario Guide

Industry Knowledge and Skills