Distribution of Inspection Cost by Line of Insurance

The task of assigning the expenses of a multiple-line insurance company to line of insurance is not an easy one. Where the expenses are incurred in the home office, it is possible to make a series of tests closely allied to those carried on in a physical laboratory and reach results which can be defended with considerable confidence. But where the expenses are incurred through the field at points widely separated and where a considerable proportion of the salaried force involved is on the road, the problem of satisfactory distribution to line of insurance becomes intensified.