Associate In Underwriting - AU

AAA

DEFINITION of 'Associate In Underwriting - AU'

Person with qualifications to evaluate risk for insurance companies. Insurance is protection against future financial loss from injury, illness, property damage or liability for the losses of others. Insurance underwriters review applications for insurance coverage. They evaluate the potential risk, and accept, reject or modify the policy according to law or company standards. This professional designation is awarded by the Insurance Institute of America (IIA) upon successful completion of three national exams. The program leading to this designation is designed for agency and company underwriters, field representatives and account managers; this requires a working knowledge of insurance principles and coverages.

INVESTOPEDIA EXPLAINS 'Associate In Underwriting - AU'

The AU designation program complements commercial underwriting skills. The term 'underwriter' derives from financial bankers, who would accept some of the risk on a given venture, historically a sea voyage. In exchange for a premium, they would write their names under the risk information which was written on a slip created for this purpose.

RELATED TERMS
  1. Aggregate Product Liability Limit

    The maximum sum of money that an insurance company will pay during ...
  2. Limited Risk

    The risk of an investment that has a predetermined maximum downside ...
  3. Reinsurance

    The practice of insurers transferring portions of risk portfolios ...
  4. Actuarial Analysis

    The examination of risk by a highly educated and certified professional ...
  5. Indemnity Insurance

    An insurance policy that aims to protect business owners and ...
  6. Musharakah

    A joint enterprise or partnership structure with profit/loss ...
Related Articles
  1. Home & Auto

    How An Insurance Company Determines Your Premiums

    Find out how insurers use credit history to build an insurance score and how it could affect your bottom line.
  2. Insurance

    15 Insurance Policies You Don't Need

    Learn how to save money by saying "no" to unnecessary coverage.
  3. Options & Futures

    The Alphabet Soup Of Financial Certifications

    We decode the meaning of the many letters that can follow the names of financial professionals.
  4. Retirement

    Variable Vs. Variable Universal Life Insurance

    Do you know why you might need one policy versus the other? Read on to find out.
  5. Insurance

    Life Insurance: Putting A Price On Peace Of Mind

    Would your death leave loved ones financially stranded? Find out how to ease your mind and keep them protected.
  6. Options & Futures

    Is short selling a form of insurance?

    Explore short selling and put options. Learn how put options may be used as insurance to protect positions, and costs associated with using this method.
  7. Insurance

    Finding The Best Health Insurance You Can Get

    A close look at the pros and cons of Aetna vs. Cigna PPO health insurance helps you decide what's important for you.
  8. Insurance

    Avoid The No-Health-Insurance Penalty By Feb 15

    If you don't have health insurance, act NOW or you could owe penalties on your 2015 taxes, in addition to this year's.
  9. Insurance

    Rating Assurant Prepaid Vs. Delta PPO dental plans

    As more consumers – and dentists – join insurance plans, here’s help in choosing benefits that are right for you.
  10. Professionals

    What are some examples of common fringe benefits?

    Learn how offering fringe benefits can be a strategic recruitment and retention tool for employers and drastically increase total compensation for employees.

You May Also Like

Hot Definitions
  1. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  2. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  3. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  4. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
  5. Portfolio Turnover

    A measure of how frequently assets within a fund are bought and sold by the managers. Portfolio turnover is calculated by ...
  6. Commercial Paper

    An unsecured, short-term debt instrument issued by a corporation, typically for the financing of accounts receivable, inventories ...
Trading Center