Life · Chapter 7 · Insurable Interest & Underwriting
Underwriting (Risk Selection)
Definition
The process of reviewing an applicant's risk profile to decide whether they're insurable and at what rate. Primary purpose: protect the insurer against adverse selection. The two fundamental questions: does insurable interest exist, and is the applicant insurable?
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms