Underwriting
Definition
The process by which an insurance company evaluates the risk of insuring a person or property and determines whether to offer coverage and at what price. Underwriters review applications, loss history, property conditions, credit scores, and other factors to calculate the appropriate premium.
When This Matters
When you apply for homeowners insurance, the underwriter reviews your property's age, roof condition, claims history, and proximity to fire hydrants to determine your premium.
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