Casualty Actuarial Society (CAS) Practice Exam

What common expression do underwriters use to describe the concept of 'amount subject'?

1. "Within two walls"

2. "Within four walls"

3. "Inside the building"

4. "Under one roof"

The correct answer is: "Within four walls"

The expression that underwriters commonly use to describe the concept of 'amount subject' is "within four walls." This phrase conveys the idea of the total limits of coverage that a policy provides, particularly in a property insurance context. It denotes that the coverage applies to all exposures and risks within the confines of the insured location – essentially, everything that falls within the four walls of the building. This terminology reflects the underwriter's focus on understanding the physical location and the specific risks that are present within that environment. By using "within four walls," underwriters communicate a clear boundary around the insured property, ensuring that all aspects of the coverage are understood to pertain specifically to what is contained within that defined space. It emphasizes the notion of containment and risk management within that area.