Multiple choice

Why do insurers arrange for survey and inspection of the property before acceptance of a risk?

  1. To assess the risk for rating purposes

  2. To find out how the insured purchased the property

  3. To find out whether other insurers have also inspected the property

  4. To find out whether neighboring property also can be insured
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A Correct answer
Explanation

Insurers inspect the property before acceptance of a risk to assess the risk for rating purposes. Before acceptance of a risk, insurers arrange survey and inspection of the property to be insured, by qualified engineers and other experts. They not only assess the risk for rating purposes, but also suggest and recommend to the insured, various improvements in the risk, which will attract lower rates of premium. 

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