Which of the following would be considered an underwriting duty of an agent?

• A. Completing all applications and collecting initial premiums
• B. Approving applications
• C. Setting premiums
• D. Cancelling policies

Answer: (A)

In underwriting, the insurer is responsible for evaluating risk and deciding whether to issue coverage and at what price. The agent’s role is to initiate the process by gathering the applicant’s information and collecting the initial premium, so that the insurer can begin underwriting. Therefore, completing all applications and collecting the initial premiums is the duty an agent would perform as part of underwriting initiation.

Approving applications, setting premiums, and canceling policies are actions that fall to the insurer or underwriters, not the agent. Approving applications would be making the risk-acceptance decision; setting premiums involves actuarial underwriting and pricing; cancelling policies is a policy administration task handled by the insurer.