What best describes an agency underwriter?

• A. A specialized type of insurance agency whose agents or brokers have underwriting authority from an insurer.
• B. An insurer's employee who adjusts claims for losses.
• C. A broker who only sells policies without underwriting authority.
• D. A producer who handles marketing for multiple insurers.

Answer: (A)

An agency underwriter is an agency or broker that has underwriting authority granted by an insurer, allowing them to underwrite risks, issue policies and endorsements, and bind coverage within defined limits. This delegated authority means they can evaluate applications, determine eligibility, and set or confirm rates within the insurer’s guidelines, issuing coverage without needing separate approval for every case. This role differs from a claims adjuster, who handles losses after a claim, and from a broker who only sells policies without underwriting authority, or a producer who markets for multiple insurers but does not underwrite.