There are some risks which are claim-prone owing to the physical Hazard. They are generally referred to the Controlling Office along with the following particulars;
(a) Completed proposal form
(b) Risk inspection report and additional questionnaires
(c) Other premium income received from same client through same agent separately for fire, marine, and miscellaneous classes.
(d) Past loss experience and
(e) Reasons as to why the proposal is required to be accepted.
There are some risks which are usually declined due to their extra-hazardous nature are called Declined risks. Even some of these risks are accepted with extra premiums and loss minimizing restrictive conditions, clauses and warranties.
COURTESY: GENERAL INSURANCE UNDERWRITING GUIDE – PUBLISHED BY SASHI PUBLICATIONS
