Hawaii Insurance License Practice Exam

The correct term for a person who acts on behalf of an insurance company is "underwriter." An underwriter evaluates the risks associated with insuring individuals or businesses and determines the appropriate premiums and coverage options. This role is essential in the insurance industry because underwriters assess risk profiles and ensure that the insurance company maintains profitability while providing coverage to clients.

Individuals in this role analyze various factors, including the applicant's health, financial status, and any past claims history, to make informed decisions about issuing policies. They work closely with agents and brokers but have a distinct role focused on the risk assessment and policy issuance process.

In contrast, an independent adjuster investigates claims on behalf of the insurance company after a loss has occurred, but they do not make decisions about risk acceptance or premium pricing, which are core functions of underwriters. An insurance broker typically represents the insured, helping clients find suitable insurance coverage, while a claims handler manages the claims process after a loss occurs but does not engage in the underwriting process. Thus, the role of an underwriter is specifically aligned with acting on behalf of an insurance company regarding policy issuance and risk assessment.