Underwriter - a specialist in the field of insurance.
Literally "underwriter" means "under the signature risk."
Underwriter describes, evaluates and classifies the risk forms of the insurance
portfolio.
The duties of the underwriter enters sighting on behalf of
the insurer's insurance contracts, calls for the insurance (reinsurance)
offered insurance risks, qualification of risk in taking on the insurance of a
particular object or person, the determination of tariff rates and the specific
conditions of the insurance contract, drawing conclusions about the possibility
(or impossibility) conclusion of an insurance contract under certain
conditions, the formation of an insurance (reinsurance) portfolio.
Underwriter is required to have knowledge in the field of
risk assessment of personal and property insurance, to know the principles of
the insurance portfolio, the legal aspects of security, financial stability of
the insurance organization, budgeting, formation of insurance reserves,
underwriting in the reinsurance, claims handling. Underwriter - a person whose
signature is in the literal sense of the word is worth millions.
Qualification requirements - higher legal education.
Underwriter not only enter into transactions on the primary
sale of securities of the issuer, but also participates in the preparation of
the issuer, as well as accompanying the process of registration of the
Securities Commission. However, the main task of the underwriter, of course, is
the placement of securities among pre unspecified persons.
Depending on the market situation and the characteristics of
the issuer, underwriter, with two types of agreements can be concluded:
"Firm
commitment» (Firm Commitment), which is a commitment to buy back the
underwriter of the securities of the Issuer that will not be sold to third parties;
«Best effort» (Best
Efforts Agreement), which does not contain an underwriter of obligations to
repurchase the unsold securities.
In a literal translation from English. underwriter -
"undersigned". Guarantor, surety, taking on the obligation to publish
a certain number of newly issued shares, bonds and securities by buying them
for subsequent sale to investors. In Insurance - a person authorized by the
insurance company to take all kinds of risks. Underwriter is responsible for
the formation of the insurance portfolio. Two or more underwriters often form a
syndicate, the guarantor when placing the issue of securities.
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