Asked by Carissa Gulli on May 10, 2024
Verified
Underwriting is the process used by insurance companies to determine whom to insure and what to charge.
Underwriting
The process by which an individual or institution takes on financial risk for a fee, such as in the issuance of insurance policies or financial securities.
Insurance Companies
Financial institutions that provide coverage, compensating financial losses during accidents, property damage, or other liabilities.
- Understand the basic concepts and functions of underwriting in insurance.
Verified Answer
FA
fatima alsoudaiMay 11, 2024
Final Answer :
True
Explanation :
Underwriting is the process by which insurance companies assess the risk of insuring a person or asset, decide whether to offer insurance coverage, and determine the premium that should be charged for that coverage.
Learning Objectives
- Understand the basic concepts and functions of underwriting in insurance.
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