The risk selection and classification process is known as?

The risk selection and classification process is known as?

• A. Application
• B. Investigative Consumer Report
• C. Underwriting
• D. Attending Physician Statement

Answer: (C)

Underwriting is the process of evaluating and classifying risk for insurance. It involves reviewing factors like health, age, lifestyle, occupation, and other relevant information to determine if a person is insurable and what premium should be charged. Through underwriting, a policy is approved or denied and the applicant is placed into a rating category (for example, preferred, standard, or substandard). This selection and classification of risk is what the term describes. Other items are parts or tools used within underwriting—such as the initial request for coverage (the application), background checks (investigative consumer reports), or medical information provided through a physician's statement—but they do not define the overall process itself.

Underwriting is the process of evaluating and classifying risk for insurance. It involves reviewing factors like health, age, lifestyle, occupation, and other relevant information to determine if a person is insurable and what premium should be charged. Through underwriting, a policy is approved or denied and the applicant is placed into a rating category (for example, preferred, standard, or substandard). This selection and classification of risk is what the term describes. Other items are parts or tools used within underwriting—such as the initial request for coverage (the application), background checks (investigative consumer reports), or medical information provided through a physician's statement—but they do not define the overall process itself.