Underwriting Is

question 145

Multiple Choice

Underwriting is

• A) selling insurance at a premium less than that of the competition.
• B) payment of a claim.
• C) a method for developing policy wording.
• D) the determination of which exposures to insure.
• E) none of these.

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Definitions:

Double-Declining-Balance

An accelerated depreciation method that calculates depreciation at twice the rate of the straight-line method.

Depreciation

The systematic allocation of an asset's cost over its useful life, reflecting its decrease in value over time.

Periodic Depreciation Charge

A non-cash expense that allocates the cost of a tangible asset over its useful life on a regular basis.

Acquisition Fees

Fees associated with the process of acquiring another company, such as legal, consulting, and accounting fees.