underwriting
underwriting Lexical Profile
underwriting Game Scores & Validity
• noun
The process by which an insurer, bank, or investment firm evaluates and assumes the financial risk of a loan, insurance policy, or newly issued security in exchange for a fee or premium.
"The mortgage application is currently in underwriting, where analysts are verifying the borrower's credit history and income."
The act of providing financial support, sponsorship, or a guarantee for a public broadcast, cultural event, or commercial venture.
"Corporate underwriting has allowed the public radio station to produce several investigative journalism series without relying on traditional commercials."
• verb
To sign and accept liability under an insurance policy, thereby guaranteeing payment in the event of loss or damage.
"Several major firms are underwriting the shipping company's new fleet of cargo vessels."
To undertake to finance or otherwise support a project, event, or enterprise, especially by assuming financial risk or buying unsold shares in a public offering.
"A consortium of local foundations is underwriting the construction of the new community theater."
• Nearby Words
Word Origin & Etymology
Derived from the 17th-century marine insurance practice at Lloyd's of London, where financiers who agreed to accept a portion of a voyage's risk literally wrote their names underneath the risk assessment on the policy.