Which term describes the process of evaluating information from multiple sources to decide whether to issue insurance?

Which term describes the process of evaluating information from multiple sources to decide whether to issue insurance?

• A. Risk assessment
• B. Actuarial analysis
• C. Underwriting
• D. Marketing

Answer: (C)

Underwriting is the process of reviewing and weighing information from many sources—application details, medical records or exams, driving or credit history, inspections, and other relevant data—to decide whether to issue a policy and on what terms. This step determines eligibility, coverage limits, and pricing, balancing the applicant’s risk with the insurer’s risk. The other concepts describe related ideas but not the actual decision about issuance: risk assessment is about identifying risk in general, actuarial analysis focuses on predicting losses and setting rates, and marketing is about selling the policy.

Underwriting is the process of reviewing and weighing information from many sources—application details, medical records or exams, driving or credit history, inspections, and other relevant data—to decide whether to issue a policy and on what terms. This step determines eligibility, coverage limits, and pricing, balancing the applicant’s risk with the insurer’s risk. The other concepts describe related ideas but not the actual decision about issuance: risk assessment is about identifying risk in general, actuarial analysis focuses on predicting losses and setting rates, and marketing is about selling the policy.