Property insurance policies are standardized for all the following reasons except:
A) to improve the accuracy of insurance rates
B) to help reduce costs to consumers
C) to eliminate competition between insurers
D) to reduce litigation over policy meaning

Question

Quizplus · Accepted Answer

Standardization of property insurance policies is intended to improve the accuracy of insurance rates, reduce costs to consumers, and reduce litigation over policy meaning. However, it is not designed to eliminate competition between insurers. In fact, competition is still present among insurers who offer different rates and coverage options within the framework of standardized policies.

Property Insurance Policies Are Standardized for All the Following Reasons