In property insurance claims, there is sometimes a question of whether coverage exists or not. In these situations the insurer will send a reservation of rights letter. The purpose of this letter is to advise the insured that

In property insurance claims, there is sometimes a question of whether coverage exists or not. In these situations the insurer will send a reservation of rights letter. The purpose of this letter is to advise the insured that

A. A coverage problem may exist.

B. The claim will be handled by an independent adjuster.

C. The policy may not be renewed due to loss frequency.

D. The claim is in excess of the deductible.

Answer: A