Which term represents the insurer in an insurer transaction?

Which term represents the insurer in an insurer transaction?

• A. Agent
• B. Broker
• C. Adjuster
• D. Underwriter

Answer: (A)

In insurer transactions, the person who represents the insurer in evaluating risk and issuing the policy is the underwriter. The underwriter reviews applications, determines eligibility and premium, and authorizes coverage on behalf of the insurer. An agent, on the other hand, is a sales representative who sells policies for the insurer but is not the insurer itself. A broker represents the insured and helps place coverage with an insurer. An adjuster handles claims and loss adjustments after coverage is in force. So the best term for the insurer’s representative function in underwriting and issuing the policy is underwriter.

In insurer transactions, the person who represents the insurer in evaluating risk and issuing the policy is the underwriter. The underwriter reviews applications, determines eligibility and premium, and authorizes coverage on behalf of the insurer. An agent, on the other hand, is a sales representative who sells policies for the insurer but is not the insurer itself. A broker represents the insured and helps place coverage with an insurer. An adjuster handles claims and loss adjustments after coverage is in force. So the best term for the insurer’s representative function in underwriting and issuing the policy is underwriter.