In a delegated scheme for an office packaged facility, which function is most likely to be delegated by the insurer?

In a delegated scheme, the insurer typically grants authority to a third party, such as a coverholder, to perform specific tasks on their behalf. Among the options given, underwriting is the function that is most commonly delegated because it involves assessing risks and determining the terms and conditions under which insurance coverage will be provided.

By delegating underwriting, insurers can leverage the expertise and local knowledge of the coverholder, allowing for more efficient processing of applications and tailoring coverage to the needs of clients. This enhances the ability to swiftly respond to market demands while maintaining control over underwriting standards.

The other functions, such as claims payment and coverholder audits, often remain responsibilities of the insurer due to the significant financial implications and the need for compliance and oversight. Surveys, which involve assessing property conditions, may also be retained by the insurer or involve partnership arrangements, but they do not typically encompass the same level of authority and discretion as the underwriting process.