Underwriting is the process of evaluating the risk and determining whether to insure it or not. In other words, it is the determination of which exposures are insurable and at what price. Underwriters use various factors and guidelines to assess the risk and make a decision on whether to provide coverage, how much coverage to provide, and at what premium.

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Underwriting Is

Question 75

Multiple Choice

Underwriting is

A) selling insurance at a premium less than that of the competition.
B) payment of a claim.
C) a method for developing policy wording.
D) the determination of which exposures to insure.
E) none of these.

Correct Answer: