A subscription policy is characterized by which of the following?

A subscription policy is characterized by which of the following?

• A. Is Standardized
• B. All The Above
• C. A Number Of Insurers Subscribe To
• D. Is Always Customized To Fit The Needs Of A Unique Risk

Answer: (C)

A subscription policy is defined by multiple insurers sharing the risk on a single policy. One insurer often serves as the lead, administering the policy, while several other insurers subscribe to it and cover portions of the exposure. The essential point is the participation of a number of insurers in the same policy, which is what distinguishes a subscription policy from a policy written by a single carrier. While some forms may be standardized and some risks may be handled with customized terms, the defining feature remains that several insurers subscribe to the policy.

A subscription policy is defined by multiple insurers sharing the risk on a single policy. One insurer often serves as the lead, administering the policy, while several other insurers subscribe to it and cover portions of the exposure. The essential point is the participation of a number of insurers in the same policy, which is what distinguishes a subscription policy from a policy written by a single carrier. While some forms may be standardized and some risks may be handled with customized terms, the defining feature remains that several insurers subscribe to the policy.