Underwriting is best described as:
A) Activities related to selecting acceptable risks so that general insurer objectives are met.
B) Actuarial science
C) Production-related activities performed primarily by agents in the field
D) Process of developing pricing structures for insurance,often performed by an actuary
E) A function most often performed by adjusters.

Question

Quizplus · Accepted Answer

Underwriting involves the process of selecting acceptable risks for an insurance company to ensure that their objectives are met. This includes assessing the risk and determining the appropriate premium to be charged. Actuarial science involves statistical analysis to predict and manage risk, while production-related activities are usually performed by agents in the field. Developing pricing structures is often done by an actuary, but this is only a part of the underwriting process. Adjusters primarily deal with investigating and settling claims.

Underwriting Is Best Described As