What is the process of selection, classification, and rating, determining insurability known as?

The process of selection, classification, and rating to determine insurability is known as underwriting. Underwriting is a critical function in the insurance industry, as it involves evaluating risks associated with potential policyholders. This process helps insurers decide whether to offer insurance coverage, what terms to apply, and how much to charge for premiums.

In underwriting, an insurer reviews various factors such as the applicant's health history, lifestyle choices, occupation, and other relevant data. This assessment allows the insurer to categorize applicants into different risk levels, which helps in establishing appropriate rates and ensuring that the insurance pool remains financially stable.

Other options, such as claim processing, benefits assessment, and policy evaluation, relate to different aspects of the insurance process and do not encompass the decision-making aspect involved in assessing a potential insured's risk. Claim processing deals with how claims are handled after a loss has occurred, benefits assessment focuses on evaluating what benefits are available under a policy, and policy evaluation involves reviewing existing policies for their performance or relevance rather than determining initial insurability.