What’s “underwriting”?

It’s a term used to describe the process insurance companies use to evaluate and assess risks and predict how they will pay claims. It involves statistics, math and data about large numbers of similar people or businesses who have insurance claims (for example: how often hurricanes make landfall in certain areas, how long female smokers live, or how frequently married male drivers have wrecks).
 
Simply, insurance companies use underwriting to decide whether to insure a business, a driver, a house, or a life. If they chose to “write” the insurance, they underwrite to figure how much premium to charge. Premiums are calculated so  insurance companies can pay claims for accidents, deaths or whatever they insure and still make a profit.

If your lawyer understands underwriting, he can help you evaluate questions about your insurance rights and help you get the best recovery if you have a valid claim your insurer has denied.