Asked by shivangi thakur on Apr 28, 2024
Verified
The process used by an insurance company to determine whom to insure and how much to charge is called
A) a premium
B) underwriting
C) an insuring agreement
D) indemnity
Underwriting
involves the process of evaluating and assuming risk in financial transactions, notably in insurance and investments.
Insurance Company
A financial institution that provides coverage against specified risks in exchange for premiums, offering policies for health, life, property, and other forms of insurance.
- Comprehend the process and importance of financial underwriting and insurance.
Verified Answer
FI
Folopater IbrahimMay 02, 2024
Final Answer :
B
Explanation :
Underwriting is the process used by insurance companies to evaluate the risk of insuring a client, decide whether to accept or reject that risk, and determine the premium that should be charged for insurance coverage.
Learning Objectives
- Comprehend the process and importance of financial underwriting and insurance.
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