According to the Insurance Act, an applicant must have what type of knowledge?

An applicant must possess a reasonable knowledge of insurance types, as this foundational understanding is critical for effectively navigating the complexities of the insurance industry. This knowledge helps ensure that individuals can accurately assess different types of insurance products, better understand policy terms, and provide appropriate recommendations to clients.

Having a reasonable grasp of various insurance types also equips applicants to identify the coverage options that best meet their clients' needs and assist in making informed decisions. This primary knowledge is essential, not only for regulatory compliance under the Insurance Act but also for building trust and credibility with clients who seek guidance on their insurance choices.

In contrast, while knowledge of business practices, extensive experience, and general knowledge of risks are valuable, they are not strictly required to fulfill the foundational understanding necessary to begin practicing in the field as mandated by the Insurance Act.