What is an example of a subjectivity in a Market Reform Contract?

In the context of a Market Reform Contract, subjectivity refers to elements that introduce a degree of uncertainty or dependency on the underwriter's judgment before accepting a risk. Conducting a survey prior to accepting the risk exemplifies this condition because it relies on the results of the survey to assess the risk accurately. The need for a survey indicates that certain characteristics of the risk are not fully understood or quantified at the time the contract is being negotiated. This can vary based on the underwriter’s discretion and interpretation of the findings from the survey.

In contrast, a fixed premium rate, statements of coverage limits, and guarantees of payment upon claim are objective elements of a contract. They specify clear terms that do not depend on further evaluations or interpretations. Thus, these components do not embody subjectivity in the same way that the requirement for a survey does, as the latter reflects a conditional aspect that needs further assessment before finalizing the terms of the contract.