Which term refers to the agreement to provide insurance coverage?

The term that refers to the agreement to provide insurance coverage is binding. Binding occurs when an insurer officially agrees to provide an insurance policy to an applicant after evaluating their risk and terms. This process ensures that the insured has coverage in place, and it typically follows the underwriting process, where the insurer assesses the risks involved and determines appropriate terms.

In the context of insurance, binding signifies the commitment from the insurer to cover the risk of loss in accordance with the policy terms. This creates a contractual obligation that underpins the insurance relationship.

The other options describe related concepts but do not specifically denote the act of agreeing to provide coverage. Underwriting involves the evaluation of risk and setting the terms for the policy rather than binding it. The agreement to indemnify refers to the obligation of the insurer to compensate the insured for covered losses but does not directly indicate the establishment of coverage. Acceptance of risk indicates the insurer's acknowledgment of the inherent risks involved in writing a particular policy but, again, does not represent the formal agreement to provide insurance coverage.