A risk considered as sub standard in future can be dealt with by insurers through…

A risk considered as sub standard in future can be dealt with by insurers through

(i) premium loading (ii) double insurance (iii) excess imposition

  • A.
    I and II
  • B.
    I and III
  • C.
    II and III
  • D.
    I,II and III
Correct Answer: Option B
Explanation

premium loading; The amount an insurer needs to cover its expenses and generate profit.

 Excess imposition – Your insurer may impose a non-standard excess, because of the number of claims you have had, or other factors which may mean you are more likely to make a claim.

 

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