Underwriting is best described as
A)the process of deciding whom the company will insure and the applicable premiums it will charge.
B)actuarial science.
C)production-related activities performed primarily by agents in the field.
D)the 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 evaluating risks and deciding whom the insurance company will insure and the applicable premiums it will charge based on those risks. It is an important aspect of insurance business that helps insurers to manage their risk and ensure profitability. Actuarial science is a related field that deals with mathematical and statistical analysis of risks and premiums. Production-related activities, pricing structure development, and claim adjustment are other important aspects of insurance business but are not synonymous with underwriting.

Underwriting Is Best Described as