What is underwriting?

An underwriter evaluates an application, claims histories, and hazards to recommend coverage as applied (you’ll pay the rate you were quoted) or coverage at some new premium rate. 

An example of the underwriting process as it applies to life insurance for example, would include reviewing the application and outcome of a medical exam, past doctor records, reports from the Medical Information Bureau (MIB) etc.  If the agent that sold the policy did a good job when the application was originally taken—the applicant will be approved as applied and the underwriter will simply acknowledge that the correct rate was quoted and the policy should soon go in force. 

If the underwriter finds, after reviewing doctor records or the results of the medical exam, that the applicant is at an above average risk for a heart attack—then an adjustment will be made in health classification and the applicant will be asked to pay a higher premium.  At worst—the applicant could be declined.