If an Underwriter Suspects Moral Hazard,the Underwriter May Ask an Outside

question 46

Multiple Choice

If an underwriter suspects moral hazard,the underwriter may ask an outside firm to investigate the applicant and make a detailed report to the insurer.This report is called a(n)

• A)inspection report.
• B)application.
• C)M)I.B.report.
• D)agent's report.

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Definitions:

Business Markets

Commercial sectors that involve transactions between businesses rather than between a business and a consumer.

Consumer Markets

markets consisting of individuals or households that purchase goods and services for personal consumption.

Financial Risks

The possibility of losing financial capital due to market fluctuations, business decisions, or other financial activities.

Customer Complaints

Feedback from customers expressing dissatisfaction with a product or service, which can provide businesses with opportunities for improvement.