Which term best describes the process of reviewing and approving policy applications?

The term that best describes the process of reviewing and approving policy applications is underwriting. Underwriting is a critical function within the insurance industry where an underwriter assesses the risk associated with the applicant based on various factors such as their health, driving history, property condition, and other relevant criteria. This assessment helps the insurer determine whether to accept or reject the application, as well as what terms and conditions should apply if the policy is issued.

Underwriting ensures that the insurance company can manage its risk effectively while still providing coverage that meets the needs of its clients. It involves a comprehensive evaluation process, including gathering information, analyzing data, and sometimes requiring additional documentation. The end result is a tailored insurance policy that reflects the assessed risk.

The other terms listed do not capture this specific process. Regulation refers to the rules and laws governing the insurance industry, adjustment involves the claims process after an event occurs, and liability relates to the legal responsibilities that an insured party may have towards others. Each of these terms serves a different role within the insurance framework, but underwriting specifically pertains to the initial evaluation of applications for insurance coverage.