Underwrote Meaning: Definition, Examples, and Translations

Finance

• In finance, underwriting typically involves assessing the risk of providing a loan or insurance and setting terms accordingly.
• Investment banks underwrite securities by buying them from issuers and selling them to the public, ensuring capital raises for businesses.

Literature

• The concept of underwriting has appeared in numerous literary works as a symbol of support and trust in ambitious endeavors.
• Stories about entrepreneurs often highlight how their ideas were underwritten by investors, showcasing the partnership between visionaries and financiers.

Insurance

• In insurance, underwriting is vital to assess claims and determine premiums, acting as a safety net for unforeseen events.
• Underwriters evaluate applications by analyzing risks, helping to protect both the insurer and the insured.

Pop Culture

• Movies about finance frequently depict intense underwriting situations, showcasing the tension in high-stakes decisions.
• Television shows often feature characters who work as underwriters, illustrating their important role in bringing ideas to life.

Main points about word origin

• The word 'underwrite' dates back to the 17th century, originally referring to the practice of signing below a statement of risk.
• It comes from the combination of 'under,' indicating support or foundation, and 'write,' denoting the act of committing to something in writing.

The term 'underwrite' originates from the early 17th century, deriving from the prefix 'under-' meaning 'beneath' or 'below' and the verb 'write'. In its initial usage, it referred to the practice of writing one’s name beneath a document as a form of guarantee or accountability. This practice was prevalent in maritime insurance, where underwriters would assume the risk of loss at sea by providing coverage in exchange for a premium. Over time, the term expanded to encompass various types of risk management and financial agreements. By the 19th century, 'underwriting' became a formal term in the field of insurance, signifying the evaluator's role in assessing risk and determining appropriate premiums. Today, it is widely used in both insurance and financial sectors, illustrating the historical evolution of the terminology from a simple guarantee to comprehensive risk assessment.

This word's position of #34,163 indicates it's among the more rare English words. While understanding it broadens your vocabulary, focus on more common words first.

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• 34163 underwrote
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