Multiple choice

Who decides whether the risk has to be accepted or not?

  1. Insurer

  2. Insured

  3. Underwriter

  4. Surveyor

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Underwriter decides whether to accept the risk or not. Underwriting, in a technical sense, comprises the following steps:

i. Assessment and evaluation of hazard and risk in terms of frequency and severity of loss ii. Formulation of policy coverage and terms and conditions iii. Fixing of rates of premium