Which statement best captures the role of underwriting in preventing catastrophic losses in an insured risk?

Which statement best captures the role of underwriting in preventing catastrophic losses in an insured risk?

• A. Underwriting has no impact on catastrophe risk
• B. Catastrophic risk is primarily a function of number of insureds
• C. Underwriting has a role but not related to catastrophes
• D. Losses must not be catastrophic, and underwriting actions influence this

Answer: (D)