Underwriting
Plain English Definition: The process of evaluating risks to determine insurance coverage and premiums.
What Underwriting really means for someone with an insurance policy
Underwriting involves assessing various factors like age, health, and property condition to decide coverage terms and premium rates.
Underwriting Real World Examples
- A life insurance company checking medical records before issuing a policy.
- Home insurers inspecting properties for structural risks.
- Car insurers reviewing driving histories for coverage decisions.