Underwriting might best be defined as:
A)The process of taking other people's money under the table and writing it off as a business expense
B)The selection of insureds and the pricing of insurance for each insured
C)The determination of coverage after an insured has a claim
D)The process of determining whether an insurance company wishes to sell a particular type of insurance coverage

Question

Quizplus · Accepted Answer

Underwriting involves the evaluation and selection of potential insureds, as well as determining the appropriate premiums and terms for each insured. It is a critical process in the insurance industry to manage risk and ensure profitability. Options A and C involve unethical or incorrect practices, and option D is not a complete definition of underwriting.

Underwriting Might Best Be Defined As