Definition

The potential for loss due to factors covered by your policy. Understanding exposure helps you decide on the right level of protection.

What to consider

  • Provide accurate and complete information.
  • Understand how underwriting affects your premiums.
  • Prepare for possible additional documentation requests.

Real world scenarios

  • A new applicant underwent insurance underwriting to determine the premium for his life insurance policy.
  • An insurer performed underwriting on a business to assess risk factors before issuing coverage.
  • A health plan conducted underwriting based on medical history and lifestyle factors.

Related terms

Insurance & Financial Protection