The correct answer is: C. Both the statements above are correct.
An underwriter is an insurance professional who assesses the risk of an insurance applicant and determines whether to insure them and, if so, at what premium. Underwriters typically have a background in finance, statistics, or actuarial science.
The underwriter is an employee of the insurer, which is the company that provides the insurance. The underwriter works with the insurer’s risk management team to assess the risk of an insurance applicant and to determine the appropriate premium.
The underwriter’s role is critical to the success of an insurance company. By accurately assessing risk, underwriters help to ensure that the company does not take on too much risk and that it is able to pay claims when they occur.
Here is a brief explanation of each option:
- A. The underwriter determines the premium to be charged. This is correct. The underwriter is responsible for assessing the risk of an insurance applicant and determining the appropriate premium. The premium is the amount of money that the insurance applicant pays to the insurer in exchange for insurance coverage.
- B. The underwriter is an employee of the insurer. This is also correct. The underwriter is an employee of the insurance company that provides the insurance. The underwriter works with the insurer’s risk management team to assess the risk of an insurance applicant and to determine the appropriate premium.
- C. Both the statements above are correct. This is the correct answer. Both statements are true. The underwriter is an employee of the insurer and is responsible for determining the premium to be charged.