What is the process called where an insurer selects and determines the rate charged for insurance?

The process of selecting and determining the rate charged for insurance is known as underwriting. Underwriting involves evaluating the risk associated with insuring a person or asset and deciding on the appropriate premium based on that assessment. Factors considered during underwriting may include the applicant's health status, lifestyle, and other relevant personal or property information. The underwriter uses this information to determine how much coverage is appropriate and at what price, ensuring that the insurer can maintain financial stability while offering policies.

Claim processing refers to the procedures followed after a policyholder submits a claim for benefits, which is different from determining rates and risks upfront. Policy evaluation typically involves reviewing existing policies for coverage and terms but does not directly relate to the selection and pricing process. Risk assessment is a broader term that includes identifying and analyzing risk factors but is not exclusively about setting premiums or rates; underwriting is the specific process employed by insurers to achieve this.