Careful Insurers SAOG receive a proposal for insuring a fleet of 100 vehicles consisting of cars, pick-up vans and tourist buses of different ages belonging to Tour Oman a leading travel agency engaged in organizing package tours within Oman. Explain how Careful Insurers SAOG will determine whether to accept this business and if yes on what terms.

Your answer should include detailed justification for your decision.

some information.

When evaluating applicants, underwriters determine whether insurance on the applicant will be:

rejected;

issued on a substandard basis;

issued on a standard basis;

or issued on a preferred basis.

Issuing Policies on a Substandard Basis The insurer generally has three basic options when it offers a substandard policy issue to an Applicant. It may: issue the policy with a higher premium than would be required for a standard policy/ issue the policy with limited benefits / issue the policy with certain exclusions