Assess the acceptability of particular risks
Certify a loss when claims are submitted
Design the structure of the products to be offered
Negotiate with the industry regulator
Answer is Right!
Answer is Wrong!
The correct answer is A. Assess the acceptability of particular risks.
An underwriter is a person or organization that assesses the risk of an insurance policy and decides whether to offer it and at what price. They do this by looking at the insured’s financial situation, the type of risk being insured, and the potential for loss.
Option B is incorrect because the underwriter does not certify losses. This is the job of the claims adjuster.
Option C is incorrect because the underwriter does not design the structure of the products to be offered. This is the job of the product development team.
Option D is incorrect because the underwriter does not negotiate with the industry regulator. This is the job of the insurance company’s management team.