Which term refers to the company that issues the new policy?

Which term refers to the company that issues the new policy?

• A. Existing Insurer
• B. Replacing Insurer
• C. Underwriting
• D. Field Underwriter

Answer: (B)

When a policy is replaced, the company issuing the new contract is called the replacing insurer. This name identifies the insurer taking on the new coverage and its responsibilities for the new policy, distinguishing it from the policy that is being replaced. The existing insurer, by contrast, is the one that originally issued the policy that is being replaced. Underwriting is simply the process of evaluating risk to determine eligibility and premiums, not the party issuing the policy. A field underwriter is the agent or specialist who helps collect information in the field, not the insurer issuing the new policy.

When a policy is replaced, the company issuing the new contract is called the replacing insurer. This name identifies the insurer taking on the new coverage and its responsibilities for the new policy, distinguishing it from the policy that is being replaced. The existing insurer, by contrast, is the one that originally issued the policy that is being replaced. Underwriting is simply the process of evaluating risk to determine eligibility and premiums, not the party issuing the policy. A field underwriter is the agent or specialist who helps collect information in the field, not the insurer issuing the new policy.