▁they ▁should ▁pay ▁for ▁it , ▁or ▁whether ▁even ▁to ▁accept ▁the ▁risk ▁and ▁ins ure ▁them . ▁Under writing ▁involves ▁meas uring ▁risk ▁expos ure ▁and ▁determ ining ▁the ▁prem ium ▁that ▁needs ▁to ▁be ▁charged ▁to ▁ins ure ▁that ▁risk . ▁The ▁function ▁of ▁the ▁under writer ▁is ▁to ▁protect ▁the ▁company ' s ▁book ▁of ▁business ▁from ▁ris ks ▁that ▁they ▁feel ▁will ▁make ▁a ▁loss ▁and ▁issue ▁ins urance ▁policies ▁at ▁a ▁prem ium ▁that ▁is ▁comm ens ur ate ▁with ▁the ▁expos ure ▁presented ▁by ▁a ▁risk . ▁ ▁Each ▁ins urance ▁company ▁has ▁its ▁own ▁set ▁of ▁under writing ▁gu idel ines ▁to ▁help ▁the ▁under writer ▁determine ▁whether ▁or ▁not ▁the ▁company ▁should ▁accept ▁the ▁risk . ▁The ▁information ▁used ▁to ▁evaluate ▁the ▁risk ▁of ▁an ▁applic ant ▁for ▁ins urance ▁will ▁depend ▁on ▁the ▁type ▁of ▁coverage ▁involved . ▁For ▁example , ▁in ▁under writing ▁autom obile ▁coverage , ▁an ▁individual ' s ▁driving ▁record ▁is ▁critical . ▁However , ▁the ▁type ▁of ▁autom obile ▁is ▁actually ▁far ▁more ▁critical . ▁As ▁part ▁of ▁the ▁under writing ▁process ▁for ▁life ▁or ▁health ▁ins urance , ▁medical ▁under writing ▁may ▁be ▁used ▁to ▁examine ▁the ▁applic ant ' s ▁health ▁status ▁( other ▁factors ▁may ▁be ▁considered ▁as ▁well , ▁such ▁as ▁age ▁& ▁occupation ). ▁The ▁factors ▁that ▁ins ur ers ▁use ▁to ▁class ify ▁ris ks ▁are ▁generally ▁objective , ▁clearly ▁related ▁to ▁the ▁likely ▁cost ▁of ▁providing ▁coverage , ▁practical ▁to ▁admin ister