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.

BREAKING DOWN '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. Insurance Underwriter

    A financial professional that evaluates the risks of insuring ...
  2. Underwriting Income

    Profit generated by an insurer's underwriting activity over a ...
  3. Underwriting Risk

    The risk of loss borne by an underwriter. Underwriting risk generally ...
  4. Adjusted Underwriting Profit

    The profit that an insurance company generates after paying out ...
  5. Assigned Risk

    A risk that an insurance company is required to provide coverage ...
  6. Underwriter

    An underwriter is a company or other entity that administers ...
Related Articles
  1. Insurance

    What is Underwriting?

    Underwriting is a term most often used in investment banking, insurance and commercial banking. Generally, underwriting means receiving a remuneration for the willingness to pay for or incur ...
  2. Insurance

    Do You Need Casualty Insurance?

    Find out how different types of coverages can protect you and which policy is right for you.
  3. Insurance

    Insurance Coverage: A Business Necessity

    Don't go to work without this policy in place - especially if your work is in your home.
  4. Insurance

    Explaining Insurance

    Insurance is a form of contract between an individual and an insurance company that spreads risk in exchange for premium payments.
  5. Insurance

    Understanding Your Insurance Contract

    Learn how to read one of the most important documents you own.
  6. Insurance

    Exploring Advanced Insurance Contract Fundamentals

    Understanding your contract can help you protect our family's financial security.
  7. Insurance

    Can I Get Life Insurance?

    Find out what you can do to get the coverage you need for the right price.
  8. Insurance

    Bundle Your Insurance For Big Savings

    Bundling your insurance can save you money and time. Read on to see how get the most out of multiline insurance discounts.
  9. Insurance

    Term Life Insurance: Everything You Need to Know

    Term life insurance is an affordable way to financially protect your loved ones after your death. Here's what you need to know before purchasing a policy.
  10. Insurance

    4 Reasons Why Waiting To Buy Life Insurance Is a Bad Idea

    Understand the benefits of applying for and securing life insurance coverage while you are young and healthy, and learn the cost of waiting to get coverage.
RELATED FAQS
  1. How does insurance underwriting differ from investment underwriting?

    Understand the difference between insurance underwriting and investment underwriting, including what types of risks an underwriter ... Read Answer >>
  2. What is the difference between underwriting and investment income for an insurance ...

    Learn more about insurance companies' investment and underwriting incomes. Read about how investment incomes and underwriting ... Read Answer >>
  3. What are examples of risks for all underwriter types?

    Learn about the risks faced by different types of underwriting activity. Explore specific examples of risks faced by insurance ... Read Answer >>
  4. How do I become an underwriter?

    Learn about the education, training and certification required to become an insurance underwriter as well as the important ... Read Answer >>
  5. Why is my insurance premium so high/low?

    Insurance premiums can be affected by many factors including: type and amount of risk size of deductible amount of coverage ... Read Answer >>
  6. What is the average return on total revenue for the insurance sector?

    Learn about the three main segments of the insurance industry, and find out what the average return on revenues is for the ... Read Answer >>
Hot Definitions
  1. Quadruple Witching

    The expiration date of various stock index futures, stock index options, stock options and single stock futures. All stock ...
  2. Co-pay

    A type of insurance policy where the insured pays a specified amount of out-of-pocket expenses for health-care services such ...
  3. Protectionism

    Government actions and policies that restrict or restrain international trade, often done with the intent of protecting local ...
  4. Fiduciary

    A fiduciary is a person who acts on behalf of another person, or persons to manage assets.
  5. Demonetization

    Demonetization is the act of stripping a currency unit of its status as legal tender and is necessary whenever there is a ...
  6. Investment

    An asset or item that is purchased with the hope that it will generate income or appreciate in the future. In an economic ...
Trading Center