What is the primary purpose of ISO in relation to insurance policies?

The primary purpose of the Insurance Services Office (ISO) is to create and standardize property and casualty insurance policies. This organization develops policy forms, coverage specifications, and loss costs that help insurance companies design their products consistently and efficiently. Standardization facilitates understanding and comparison of insurance products for consumers and ensures that many insurers can use the same definitions and provisions, which aids in underwriting and marketing efforts.

ISO's role is critical for maintaining a level of uniformity across the industry, enabling insurance companies to have a baseline from which they can customize their offerings to meet the specific needs of their customers. This is essential in a multi-faceted insurance market where clarity and transparency are crucial for consumers to make informed choices.

In contrast, regulating insurance premiums, offering financial assistance during claims, and eliminating risk factors are not the fundamental roles of ISO, although these aspects can be influenced by the standardization of policies and forms that ISO provides.