Underwriting
The process by which an insurance company evaluates the risk of insuring an applicant based on factors such as their age, health, lifestyle, and occupation.
Detailed Explanation
Underwriting helps the insurance company determine whether to issue a policy and at what premium rate.
Practical Example
When John applied for life insurance, the underwriting department reviewed his medical history, lifestyle, and other factors to assess the risk and determine his premium.
Frequently Asked Questions
Related Terms
Need Insurance Coverage?
Request quotes from top insurance providers and find the best coverage for your needs.
Get Free Quotes