What is the primary function of underwriting in casualty insurance?

The primary function of underwriting in casualty insurance is to assess risk and determine policy terms. Underwriters evaluate various factors associated with the risk being insured, such as the nature of the risk, the applicant's claim history, and overall exposure. This assessment helps in establishing the premium rates, coverage options, and specific conditions of the policy.

By thoroughly analyzing the risk, underwriters ensure that the insurance company can maintain its financial stability while providing adequate coverage to policyholders. This critical process enables the insurer to make informed decisions about which risks to accept and how to appropriately price and handle those risks, ultimately leading to more sustainable underwriting practices within the casualty insurance field.

The other choices relate to different functions within the insurance industry. Marketing insurance policies to consumers focuses on promoting and selling policies, settling claims involves managing and disbursing payments after losses occur, and providing legal advice covers the legal aspects of insurance laws and regulations. Each of these tasks is important, but they do not define the core function of underwriting.