What is the role of an Underwriter?

• A. A person who analyzes claims to determine settlement amounts.
• B. A CSR who answers questions about policy terms.
• C. A broker who sells policies.
• D. An individual that works in the home office and determines if a risk is suitable for the company or not.

Answer: (D)

Underwriting is about evaluating whether a proposed risk fits the insurer’s guidelines and what terms or price should apply. The person who does this work typically operates in the insurer’s home office and reviews factors like health history, age, lifestyle, and other risk indicators to decide if coverage will be offered and under what conditions. They may approve the risk, require a higher premium, add exclusions, or decline coverage altogether. This is different from claims handling, which involves determining how much to pay after a loss; or from a customer service rep who answers questions about policy terms; or from a broker who sells policies.