Why do insurers arrange for survey and inspection of the property before acceptance of a risk?

A. To assess the risk for rating purposes

B. To find out how the insured purchased the property

C. To find out whether other insurers have also inspected the property

D. To find out whether neighboring property also can be insured

Answer: Option A

Solution(By Examveda Team)

To assess the risk for rating purposes. Before acceptance of a risk, the insurer arranges a survey and inspection of the property. Risk transfer through risk pooling is called insurance. Loss prevention measures reduce the chance of occurrence of risk. Insurance provides peace of mind and helps one plan his business effectively.