Sam Bana
Risk and Management Insurance
October 10, 2017
Chapter 6
Review Questions 2,5
2)
A) Define the meaning of underwriting?
Underwriting refers to the process of selecting, classifying, and pricing applications
for insurance. The underwriter is the person who decides to accept or reject
application.
B) Briefly explain the meaning of underwriting? The objective is to produce a
profitable business plan. They try to limit who they insure based on loss experience.
There are many factors set by top management for standards and pricing such as
territories, prohibited business and rating plans. There also should be equitable
