Question

According to the Inspection and Surveys provision:

A. the insured must allow the insurer to inspect the insured premises at any time.
B. the insured must submit regular self-inspection reports to the insurer, which are used to determine insurability and premiums.
C. the insured must respond to insurer surveys, which are used to gather information about the insured's payroll or annual sales.
D. the insurer will conduct a survey at the end of each policy period to determine its actual exposure over the course of the past policy period.

Answer 1

Option (D), The Inspection and Surveys provision can vary, but typically, workplace safety inspections are unannounced and prioritized by risk, and insurers can't be forced to provide low-cost insurance to all, potentially causing them to exit markets with strict regulations.

Step-by-step explanation:

According to the Inspection and Surveys provision, it could be interpreted in various ways depending on the specific context of the insurance policy or regulatory environment. However, in a general sense regarding workplace safety and insurance, none of the options provided perfectly matches standard procedures. Instead, workplace inspections by entities such as OSHA are initiated without advance notice and are based on priorities like imminent danger, worker complaints, targeted inspections, and follow-ups.

When it comes to insurance, state insurance regulators might require insurers to accommodate certain pricing structures, but insurers cannot be compelled to insure everyone at low costs and might withdraw from markets with overly strict regulations.

Moreover, government interventions often mandate purchasing insurance, which helps avoid problems like adverse selection, enabling insurers to set prices based on an average market risk, despite still trying to avoid high-risk consumers.