which of the following statements about underwriting policy is (are) true? i. a company must establish an underwriting policy consistent with company objectives. ii. underwriting policy is usually subjective and allows the underwriter considerable flexibility with respect to lines written and forms used.

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04-11-2022
Business

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which of the following statements about underwriting policy is (are) true? i. a company must establish an underwriting policy consistent with company objectives. ii. underwriting policy is usually subjective and allows the underwriter considerable flexibility with respect to lines written and forms used.

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sapanpandit sapanpandit · Answer 1 · 2022-11-09T10:54:47-05:00

It is true that a corporation must adopt an underwriting policy that is in line with its goals.

Pricing for accepted insurable risks is determined by insurance underwriters. Underwriting refers to obtaining payment for being willing to take on a potential risk. In order to assess the likelihood and size of a risk, underwriters employ specialist algorithms and actuarial data.

An insurance business assesses its risk through insurance underwriting. It aids an insurance provider in determining whether it would be beneficial to take a chance on covering a person or firm.

Learn more about underwriting here:

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