Exam DISC-RM Practice Question 204
Study guide: Exam DISC-RM
An insurer's guideline for small office buildings says:
- acceptable: protection class 1 to 6, sprinklered or under 20,000 square feet;
- acceptable only with a $10,000 deductible: one property loss in the past three years;
- decline: two or more losses in the past three years.
A line underwriter's authority covers acceptable risks up to $5,000,000 of insured value. A submission is a 15,000 square foot unsprinklered office in protection class 4, insured value $3,000,000, with one water damage loss two years ago. What should the underwriter do?
- A) Offer coverage with the $10,000 deductible
- B) Decline it, because the building has no sprinklers
- C) Refer it to a senior underwriter, because it has had a loss
- D) Accept it as submitted, because the loss was only water damage
Answer this question and see the worked solution