Underwriting
/UN-dur-ry-ting/
The process insurers use to evaluate risk and set prices.
Definition
Underwriting is the process insurance companies use to evaluate applications, assess risk, and determine whether to offer coverage and at what price. Underwriters analyze factors like driving records, credit scores, claims history, and property conditions to make these decisions.
Example
During underwriting, the insurance company reviewed Mike's driving record and credit score before offering a quote.
More General Terms Terms
The amount you pay for your insurance policy.
The amount you pay out-of-pocket before insurance kicks in.
The contract between you and your insurance company.
A request for payment under your insurance policy.
The protection provided by your insurance policy.
The maximum amount an insurer will pay for a covered loss.
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