What is the role of 'underwriting' in Accident and Sickness Insurance?

Underwriting plays a critical role in Accident and Sickness Insurance by assessing risk and determining whether an individual is insurable under the terms of a policy. This process involves evaluating various factors, such as the applicant's health history, lifestyle, and potential risk factors that could affect their likelihood of needing medical care or filing a claim.

By performing this risk assessment, underwriters can set appropriate premium rates and policy conditions that reflect the level of risk associated with insuring that individual. This helps insurance companies maintain financial stability and ensure that they can cover claims when they arise.

The other roles mentioned, such as evaluating claims after submission or managing payouts for existing claims, pertain to claims processing and administration rather than the initial underwriting process. Providing customer service support is important for client relations but does not directly involve risk assessment or insurability decisions. Thus, understanding the underwriting function is essential for comprehending how insurance companies balance risk and ensure proper coverage for applicants.