Freja is a loss control specialist for an insurer and a CPCU. While inspecting locations of an applicant for insurance, she notices lapses in routine maintenance of certain mechanical and electrical equipment. However, the applicant is not applying for mechanical breakdown insurance. Which one of the following would be Freja's best choice regarding the lapses in maintenance to comply with Rule 3.1 of the Code of Professional Conduct concerning material information?

Select one:

A. Not report the lapses as they are not material to the business activity of insuring the risk

B. Report the lapses only with the management of the applicant

C. Recommend that the applicant obtain mechanical breakdown insurance

D. Report the lapses as it is material to her professional activity