Q351
Which one of the following statements is correct?
A.
If the underwriter feels that the risk is more, he will accept at OR
B.
If the underwriter feels that the risk is more, he may impose a lien
AnswerC.
Both the statements above are correct
D.
Both the statements above are wrong
Answer: Option B
Solution
Answer: Option B
Solution:
If the underwriter feels that the risk is more, he may impose a lien. An insurance contract represents a guarantee by an insurer that it will pay for damages and losses caused by covered perils. Creating insurance policies, or underwriting, typically represents the insurer's primary source of revenue.