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Investments glossary

Underwriting Risk


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Quotes of the day:

There is no moral middle ground. Indifference is not an option. ... For the sake of our children, I implore each of you to be unyielding and inflexible in your opposition to drugs.

— Oliver L. North

Underwriting risk is the risk of loss borne by an underwriter. In insurance, underwriting risk may arise from an inaccurate assessment of the risks associated with writing an insurance policy or from uncontrollable factors. As a result, the insurer’s costs may significantly exceed earned premiums.


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