Cash‐flow underwriting means writing insurance at a discounted price in order to get
the premium dollars to invest at high interest rates.

Question

Quizplus · Accepted Answer

Cash-flow underwriting refers to the practice of underwriting insurance policies with the primary aim of generating premium income that can be invested to earn interest, even if it means setting the premiums at lower rates than might be warranted by the risk.

Cash‐flow Underwriting Means Writing Insurance at a Discounted Price in Order