A broker recommends that their commercial client repair the sprinkler system in their factory. Which risk management technique does the broker's suggestion fall under?

• A.Avoidance
• B.Risk reduction
• C.Risk transfer
• D.Diversification

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A broker is reviewing a quote against a submission for a client. The client owns several older rental housing units. Underwriting has agreed to the submission, with a roof exclusion on the older buildings. The client is happy with the premium cost, but not the exclusion. What should the broker do next?

• A.Recommend the client find insurance elsewhere
• B.Debate the underwriting department to prove the roofs are in good condition
• C.Suggest the client replace the roofs in exchange for removal of the exclusion
• D.Counsel the client to take the offer as is, since they like the price

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A company that owns several large coal mines is sent a letter of notification from its insurer, stating that policy coverage will be more restrictive going forward, particularly regarding pollution. Why would the coverage become more restrictive?

• A.Changes in the law
• B.Insurer competition
• C.Decrease in remediation expenses
• D.Reduction in mandatory arbitration

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A commercial insurance agent receives a request for commercial automobile insurance from a client who transports radioactive materials. When reviewing the Autoplus report, the agent notices that the client frequently changes insurance providers, but there is no gap in insurance and the client only has minor claims in their history. What will the agent likely do, and why?

• A.Decline the risk, as it will not be profitable
• B.Accept the risk, as the agent's insurer writes the business
• C.Accept the risk with no deductible, as this will offset the risk's loss ratio
• D.Decline the risk, as the motor vehicle record should have been included with the application

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What is the intent of a cross liability clause found in a commercial general liability (CGL) policy?

• A.Insure under a trading style which is always a legal entity
• B.Provide coverage as if each named insured had a separate policy
• C.Prevent one insured from bringing an action against another named insured
• D.Compound the limits of liability by providing the limit of coverage for each named insured

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