Casualty Actuarial Society (CAS) Practice Exam

In evaluating off-premises hazards, underwriters focus on several critical factors to ensure comprehensive risk assessment. The combination of duration of travel, mode of transportation, and hazards at remote job sites encapsulates key elements that directly affect the risk profile.

Duration of travel is essential as it directly correlates with exposure to risk; longer trips may increase the likelihood of accidents or incidents occurring. The mode of transportation is crucial since different methods (e.g., trucking, rail, air) have varying risk implications associated with vehicle safety, regulatory environments, and the nature of operations involved. Lastly, hazards at remote job sites can introduce unique risks that may not be present in a controlled environment; these could include environmental factors, local infrastructure, or even the availability of emergency services.

These aspects collectively provide underwriters with a well-rounded understanding of potential exposures and can guide them in determining appropriate insurance coverage and premium rates.