Underwriting is the process by which insurers determine if they will accept an application for insurance. When an individual application is under consideration, medical factors usually govern whether or not the application is accepted or rejected. On the other hand, group applications allow the insurance company to spread the risk over a wider area, thus maximizing the chance of acceptance. An underwriter's primary services include examining the characteristics of group plans, such as the type of group, the work performed, and the size. An underwriter also evaluates the group's demographics, such as gender, age, occupation, and income. Based upon these and other evaluations, the underwriter will then determine if an individual or group plan is acceptable. If the individual or group plan is unacceptable and no recommendations are made to reverse this, the underwriter will decline the application. For more information on underwriting services, contact an insurance agency.
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