, ▁consistent ▁with ▁applicable ▁law , ▁and ▁designed ▁to ▁protect ▁the ▁long - term ▁vi ability ▁of ▁the ▁ins urance ▁program . ▁ ▁The ▁under writ ers ▁may ▁decl ine ▁the ▁risk , ▁or ▁may ▁provide ▁a ▁quot ation ▁in ▁which ▁the ▁prem iums ▁have ▁been ▁loaded ▁( including ▁the ▁amount ▁needed ▁to ▁generate ▁a ▁profit , ▁in ▁addition ▁to ▁covering ▁exp enses ) ▁or ▁in ▁which ▁various ▁exclus ions ▁have ▁been ▁st ip ulated , ▁which ▁restrict ▁the ▁circumstances ▁under ▁which ▁a ▁claim ▁would ▁be ▁paid . ▁Depending ▁on ▁the ▁type ▁of ▁ins urance ▁product ▁( line ▁of ▁business ), ▁ins urance ▁companies ▁use ▁autom ated ▁under writing ▁systems ▁to ▁encode ▁these ▁rules , ▁and ▁reduce ▁the ▁amount ▁of ▁manual ▁work ▁in ▁processing ▁quot ations ▁and ▁policy ▁issu ance . ▁This ▁is ▁especially ▁the ▁case ▁for ▁certain ▁simpler ▁life ▁or ▁personal ▁lines ▁( auto , ▁home own ers ) ▁ins urance . ▁Some ▁ins urance ▁companies , ▁however , ▁rely ▁on ▁agents ▁to ▁under write ▁for ▁them . ▁This ▁arrangement ▁allows ▁an ▁ins urer ▁to ▁operate ▁in ▁a ▁market ▁closer ▁to ▁its ▁clients ▁without ▁having ▁to ▁establish ▁a ▁physical ▁presence . ▁ ▁Two ▁major ▁categories ▁of ▁ex clusion ▁in ▁ins urance ▁under writing ▁are ▁moral ▁ha z ard ▁and ▁correl ated ▁losses . ▁ ▁With ▁a ▁moral ▁ha z ard , ▁the ▁consequences ▁of ▁the ▁customer ' s ▁actions ▁are ▁ins ured , ▁making ▁the ▁customer ▁more ▁likely ▁to ▁take ▁cost ly ▁actions . ▁ ▁For ▁example , ▁bed bug s ▁are