Alberta General Insurance Level 1 Practice Exam 2026 - Free Insurance Exam Practice Questions and Study Guide

Underwriting authority is the limit or range up to which underwriters, who are responsible for evaluating and assuming financial risk, are allowed to issue policies or bonds. This option is correct because it directly defines and explains what underwriting authority means. The other options, although related to insurance and underwriting, do not accurately define underwriting authority. Option A refers to the actual number of policies held by an insurer, not the limit of authority for underwriters. Option C refers to a specific type of underwriting (bond underwriting), not the general concept of underwriting authority. Finally, option D refers to permissions granted to brokers, not underwriters, and involves selling policies rather than issuing them.