Define Underwriting Agreement

Posted by:

A underwriting agreement can be created in a number of situations, including insurance, security issues in the event of a public offering, and bank loans, among others. A person or institution that agrees to sell a minimum number of the company`s securities for commission is qualified as an underwriter. Continuous Underwriting is the process by which risks related to the insurance of persons or assets are continuously assessed and analyzed. It developed from traditional underwriting, where risks are only assessed before the policy is signed or renewed. Continuous underwriting was first used in the employees` allowance, where the insurance premium was updated monthly, based on the insured`s pay slip. It is also used in life insurance[7] as well as in cyber insurance[8][9]. Sub-writers derive their income from the underwriting-spread between the price they pay to the issuer and what they get from investors or brokers who buy part of the offer. . . .


About the Author:

  Related Posts
  • No related posts found.