
Explanation:
Seeking property-casualty insurance is the most appropriate measure for Mr. Brad to protect his building and avoid losses resulting from large-scale compensations. Property insurance would provide protection against damage to the building resulting from fire, theft, water damage, etc. Casualty insurance, on the other hand, would provide protection against legal liability exposures, such as injuries to visitors in case of an inferno or the occurrence of any risk. This combination of property and casualty insurance would ensure that Mr. Brad is covered for both physical damages to his property and any liabilities arising from injuries or damages sustained by others. Therefore, this choice is the most comprehensive and suitable option for Mr. Brad to safeguard his interests.
Choice A is incorrect. Making life insurance and disability insurance mandatory for every tenant and visitor would not provide Mr. Brad with protection against potential losses. These types of insurances are personal coverages that protect the insured individuals, not the property owner, in case of death or disability.
Choice B is incorrect. Reinsuring the building against large-scale loss could potentially help to mitigate some financial risk associated with a major accident, but it does not directly protect Mr. Brad from liability claims arising from injuries to residents and third parties.
Choice C is incorrect. While property insurance would cover damages to the building itself due to accidents like fire, it does not typically include liability coverage for injuries or damages suffered by third parties on the premises.
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Q.1119 Richard Brad, FRM, owns a high-rise mixed-use building located in the heart of London. Although he has complied with all quality and safety standards, he fears that a major accident, such as a fire, might result in injuries to residents and third parties and he might be forced to pay for such damages. To protect his building and avoid losses resulting from large-scale compensations, Mr. Brad could most likely:
A
Make life insurance and disability insurance mandatory requirements for every tenant as well as visitors.
B
Reinsure the building against large-scale loss.
C
Seek property insurance.
D
Seek property-casualty insurance.