Actuarial Notes

Exam DISC-RM Practice Question 45

Study guide: Exam DISC-RM

A risk control representative surveys a restaurant that has applied for coverage, finds that the kitchen hood lacks a fire suppression system, and recommends one be installed as a condition of coverage. The underwriter then accepts the account. Which describes how the insurer's functions cooperated?

  • A) Risk control supplied information that let underwriting accept the account on modified terms
  • B) Premium auditing verified the restaurant's actual exposures once the policy period had ended
  • C) Claims handling used the restaurant's loss data to set the premium it would be charged
  • D) Marketing and distribution set the rate the restaurant was charged for its coverage

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