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Inner City Manufacturing Company (Inner City) insures its property through IIA Insurance (IIA), and is located in the central part of a major metropolitan area

Inner City Manufacturing Company (Inner City) insures its property through IIA Insurance (IIA), and is located in the central part of a major metropolitan area and is subject to riots. Its building is protected by an automatic sprinkler system, and security measures such as locks, fences, and gates are in place. Which one of the following statements is true regarding the underwriting of the riot exposure? Available answer options Select only one option A Riots generally only affect one risk, so IIA need not be concerned with other insureds in the area of Inner City. B Inner City's automatic sprinkler system can be especially important in suppressing fires during a civil disturbance. C Deductibles can be used to limit Inner City's riot losses, which tend to have low severity and high frequency. D Premises security at Inner City (locks, fences, and gates) has little impact limiting losses during a riot.

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