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Commerce · Q548

Insurance

Graduate and Post Graduate · Commerce · question 548

Q548

State the correct statement

A.
Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose
Answer
B.
To find out the true value of asset
C.
To find out how the asset came into the owner’s possession
D.
To know whether any other property in the neighbourhood can be insured

Answer: Option A

Solution

Answer: Option A
Solution:
Survey and inspection of property is essential before acceptance of risk to assess the risk for rating purpose. Surveys give you objective information on commercial or residential properties and their potential exposure to loss.