Which step is the final action in the underwriting rating process?

• A. Apply rating factors
• B. Verify territory and controls
• C. Underwrite terms
• D. Quote premium

Answer: (C)

The final action in the underwriting rating process is to establish and approve the actual terms of the policy. After gathering information, applying rating factors, and confirming territory and controls, the underwriter decides on the specifics of the coverage—what is included, the limits, deductibles, endorsements, exclusions, and any special conditions. This step sets exactly what risk is being accepted and how it will be handled, which then allows the premium to be calculated and quoted based on those defined terms. In other words, you finalize the policy’s terms before final pricing, so this is the concluding action in the rating workflow.