"Underwriting" is the process by which an insurance company decides whether to write an insurance policy, and, if so, at what price (premium). The amount of the premium varies in large part by the amount of risk being insured. (Other factors are included in the amount of premium including administrative costs, such as the cost of underwriting, and gains/losses from investments).

Underwriting for a life insurance policy and a health insurance policy involves looking at your medical history and the risks involved in your life.

• With respect to Medical history: The history a company looks at varies from company to company. Most companies look for specific information, such as have you ever had a heart attack. They also ask look to more general information for the recent past. For example, an insurer is likely to ask questions such as: "Have you been to a doctor during the past 24 months? If so, please describe the reason."
• With respect to Risk: Insurers ask about risks that put your life (for life insurance) or health (for health insurance) at risk. For instance, expect that a life insurance application will ask whether your activities involve risk, such as: "Do you sky dive? With health insurance policies, you're likely to be asked whether you smoke or drink alcohol excessively. 

Life and health insurance companies are not allowed to look at your genetic make-up when determining either your medical history or risk.. 

As part of the underwriting process, member insurance companies contact the MIB to learn what other member companies have previously learned about your medical history or risks. To learn more, see: MIB: Medical Insurance Bureau.

If you're interested in the history of the word "Underwrite:" Common wisdom says the word goes back to the days when Lloyds of London first started insuring ships. Then, as now, insurance would be provided by a syndicate of insurers made up of individuals willing to take the risk of providing insurance against loss. The person authorizing the assumption of that financial risk would write his name under the description of the risk. The process became known as "Underwriting."

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