Before a policy can be issued by an insurer, it first has to be approved by whom?

The correct answer is that the approval must come from an underwriter. Underwriters play a crucial role in the insurance industry by assessing risk and determining the terms and conditions of insurance policies. Before an insurer issues a policy, the underwriter evaluates the information provided in the application and considers various factors, such as the applicant's history, risks associated with the policy, and compliance with underwriting guidelines.

The underwriting process ensures that the insurer is making informed decisions about which risks to accept and under what terms. This review is essential to maintain the financial stability of the insurer and to provide coverage that is appropriate for the risk level. Once the underwriter approves the policy terms, it can then be issued to the insured.

Other roles such as claims adjusters, sales agents, and policyholders do not have the authority to approve policies for issuance. Claims adjusters deal with the evaluation and settlement of claims after a policy has been issued. Sales agents facilitate the sale of policies but do not determine the insurability or terms. Policyholders, while they are the ones purchasing the insurance, do not have the ability to influence or approve the underwriting process.