In general, underwriting involves the assessment of risks.
Insurance companies have "underwriting guidelines" that define the
metes and bounds of the risks they are willing to accept. Those
metes and bounds are defined, in turn, by the type of insurance
that the insurer issues. That is, the underwriting considerations
for a life insurance company involve factors such as age and
health, whereas underwriting considerations for an insurer that
issues automobile physical damage coverage involves considerations
such as make and model of the auto, where the auto is principally
kept, number of miles driven, and driving history. The totality of
the underwriting factors, in part, determine the premium that the
insurer will charge for the insurance.