During replacement, whose duty is to evaluate risk and decide whether a person is eligible for coverage?

During replacement, whose duty is to evaluate risk and decide whether a person is eligible for coverage?

• A. The Insured
• B. The Agent
• C. The Underwriter
• D. The Insurance Company

Answer: (C)

Underwriting is the process of evaluating risk to determine if someone can be insured and on what terms. In a policy replacement, the duty to assess risk and decide eligibility rests with the underwriter. They review health information, age, lifestyle, and the specifics of the existing and proposed policies to determine if new coverage can be issued and at what premium or with what riders. The underwriter, acting for the insurer, makes the decision; the insured provides information, and the agent helps gather and present it, but neither determines eligibility. The insurance company bears the risk, yet the actual insurability decision comes from the underwriter's assessment.

Underwriting is the process of evaluating risk to determine if someone can be insured and on what terms. In a policy replacement, the duty to assess risk and decide eligibility rests with the underwriter. They review health information, age, lifestyle, and the specifics of the existing and proposed policies to determine if new coverage can be issued and at what premium or with what riders. The underwriter, acting for the insurer, makes the decision; the insured provides information, and the agent helps gather and present it, but neither determines eligibility. The insurance company bears the risk, yet the actual insurability decision comes from the underwriter's assessment.