A person who undertakes any risk in insurance business is known as?

A. a broker
B. an underwriter
C. an insurer
D. an actuary

Correct Answer:

Option B – an underwriter

Explanation

An underwriter is any party that evaluates and assumes another party’s risk for a fee, such as a commission, premium, spread or interest. Underwriters operate in many aspects of the financial world, including the mortgage industry, insurance industry, equity markets, and common types of debt securities.