Which of the following can result from improper risk assessment during underwriting?

Improper risk assessment during underwriting can lead to significant consequences, such as coverage denials or increased premiums. When an underwriter fails to accurately evaluate the risks associated with a property, it may result in either insufficient coverage being offered or excessive pricing. For example, if a property is assessed as lower risk than it actually is, it may not have the necessary coverage, leaving the insurer vulnerable to greater losses in the event of a claim.

On the other hand, if a property is deemed higher risk due to a lack of thorough assessment, the insurer may set a higher premium to account for those perceived risks. Consequently, policyholders might either find themselves without necessary coverage or facing higher costs, which can lead to dissatisfaction and financial strain for the insured. Therefore, careful risk assessment is crucial for both the insurer's financial health and the policyholder's peace of mind.