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.