What is the name of the process that insurance companies use to determine whether or not an applicant is insurable?

The process that insurance companies use to determine whether an applicant is insurable is known as underwriting. Underwriting involves evaluating the applicant's health history, lifestyle, and other relevant factors to assess the risk associated with providing them coverage. This careful assessment helps the insurer decide if they will accept the application and under what terms, such as the premium amount or any exclusions.

Underwriting is crucial because it ensures that the insurance company can manage its risk effectively, leading to sustainable operations. The information gathered during this process informs the insurer's decision-making, allowing them to price the policy appropriately based on the individual's risk profile.

The other terms listed refer to different aspects of the insurance process. Claim processing pertains to how insurers handle and evaluate claims made by policyholders after a loss. Premium assessment might involve evaluating the cost of the policy based on various risk factors but does not encompass the comprehensive evaluation found in underwriting. Policy issuance refers to the final step of providing a policy document to the insured, which occurs after the approval of the underwriting process.