What is the maximum loss history for IS Group 20-36?

The maximum loss history for IS Group 20-36 is characterized by stringent restrictions, which specify that there can only be a maximum of 1 Group D or E loss, while also prohibiting any Group A, B, or C losses. This definition is critical for understanding eligibility and maintaining the integrity of the insurance risk pool related to this group.

In terms of risk management, limiting the number of allowable losses, particularly in Groups D and E, helps to ensure that the overall risk profile remains manageable and limits the potential for future claims. The absence of losses in higher risk groups (A, B, or C) ensures that only entities with a satisfactory loss history are considered eligible, thereby protecting the interests of the insurer and stabilizing the insurance market for manufactured homes within this classification.

The restrictions present in the correct answer effectively create a safety net for insurers by allowing them to mitigate risks associated with higher loss histories, ensuring more favorable underwriting conditions and potentially lower premiums for qualifying applicants.