Underwritten: meaning, definitions and examples
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underwritten
[ ˌʌndərˈrɪtən ]
insurance context
Underwritten typically refers to the process where an insurance company assesses the risk of insuring a person or entity. This assessment helps determine the terms and premium of the insurance policy. The underwriter evaluates various factors including health, occupation, and lifestyle to decide whether to provide coverage. It is a crucial step in the insurance process, ensuring that the company can manage its risk effectively.
Synonyms
assessed, evaluated, guaranteed.
Examples of usage
- The policy was underwritten after a thorough risk evaluation.
- She was relieved to find out that her application had been successfully underwritten.
- Underwritten policies often have specific clauses that must be understood.
financial context
In finance, underwritten refers to the agreement by an underwriter to purchase a certain number of shares of a new issue of stock. This guarantees that the issuer will raise a specified amount of capital, while the underwriter assumes the risk of selling the shares to the public. Underwriting helps facilitate capital formation by providing a safety net for issuers regarding their funding needs.
Synonyms
Examples of usage
- The investment bank underwritten the initial public offering.
- The project was underwritten by a group of financial institutions.
- Underwritten shares give investors confidence in the offering.
Translations
Translations of the word "underwritten" in other languages:
🇵🇹 subscrito
🇮🇳 अंडरराइट किया गया
🇩🇪 unterzeichnet
🇮🇩 ditandatangani
🇺🇦 підписаний
🇵🇱 podpisany
🇯🇵 引受けられた
🇫🇷 souscrit
🇪🇸 subscrito
🇹🇷 imzalanmış
🇰🇷 서명된
🇸🇦 موقع
🇨🇿 podepsaný
🇸🇰 podpísaný
🇨🇳 承保的
🇸🇮 podpisan
🇮🇸 undirritaður
🇰🇿 қол қойылған
🇬🇪 ხელმოწერილი
🇦🇿 imzalanmış
🇲🇽 suscrito
Etymology
The term 'underwritten' derives from the Old English word 'underwritan', which means 'to write underneath'. Historically, it referred to the practice of merchants and insurers who would sign their name beneath a risk assessment on a shipping document, thereby taking on responsibility for that risk. This tradition has evolved into modern underwriting practices in insurance and finance. The evolution of the term reflects the broader development of financial systems and risk assessment practices. The notion of 'underwriting' emerged prominently in the 17th century with the rise of maritime insurance and later expanded to various forms of financial backing and guarantees as industries grew and diversified.