e80-underwriting-practice Practice Test

1Single Choice

An underwriter is presented with a commercial property proposal that combines a desirable hazard profile with a technically demanding risk. Under balanced underwriting, what should be the underwriter's primary approach?

A.Decline the proposal because the technical risk outweighs the favourable hazard profile
B.Accept the proposal at the standard rate because the hazard profile is favourable
C.Charge an additional premium to reflect the degree of difficulty, while still accepting the business
D.Refer the proposal to a senior underwriter for a decision regardless of technical complexity

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