Mark Has Been an Underwriter for 20 Years

question 17

Multiple Choice

Mark has been an underwriter for 20 years. An application he recently reviewed looked odd to him. The building value in the application seemed far too high, and Mark suspected the applicant might be planning to destroy the property after it is insured. Mark hired an outside firm to investigate the applicant and to prepare a report about the applicant. This report is called a(n)

• A) agent's report.
• B) binder.
• C) physical inspection.
• D) inspection report.

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Definitions:

Social Decision Schemes

Patterns or rules that groups use to make decisions, emphasizing the process of combining individual preferences into a collective choice.

Cautious Judgments

The practice of making decisions or forming opinions based on a careful evaluation of risks and benefits.

Conservative Judgments

Decision-making that tends towards caution, favoring traditional values and the avoidance of risk or change.

Parkinson's Law

The adage that "work expands to fill the time available for its completion," suggesting efficiency decreases as the amount of time allowed increases.