Definition of underwrite in English:
verb (past underwrote; past participle underwritten)[with object]
1Sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs.
- Some are insurance policies, underwritten by insurers; whereas others are written as ‘service contracts’ in order to avoid insurance premium tax.
- It operates in the British insurance market, where it underwrites and administers creditor insurance policies.
- The ministry and legislators agreed on Tuesday that insurance companies cannot underwrite a life insurance policy for a minor until the he or she is at least 14 years old.
1.1Accept (a liability or risk) under an insurance policy.
- There's a desire on the part of the insurance industry to underwrite this risk, but they're having trouble knowing where and how to draw the lines.
- The firm was one of the biggest specialist insurers of employers' liabilities, and as such underwrote the risks by which asbestos claims should be covered.
- They build up credits or debits based on this system and the firm manages the accounts and effectively underwrites the risk, taking commissions of 6% on each trade.
2(Of a bank or other financial institution) engage to buy all the unsold shares in (an issue of new securities).
- In addition, most of the clearing banks underwrite new issues of commercial paper and, like the merchant banks, provide lines of credit to their commercial customers.
- Car companies offer their own financial services, which are underwritten by the banks.
- For reassurance that it will raise the finances, a company will usually, but not always, have its rights issue underwritten by an investment bank.
2.1Undertake to finance or otherwise support or guarantee (something): they were willing to underwrite the construction of a ship
More example sentences
- The financial support which underwrote the project also threatens to alter the villa's spirit.
- There is no compelling reason why legislators can't wait at least a year to see if the state's finances improve before underwriting a new football stadium.
- On the face of it, it makes sense that governments, through their export credit agencies, need to finance and underwrite big projects that wouldn't otherwise happen.
- Example sentences
- Historically, underwriters have achieved financial success by combining skilful underwriting with returns on investment income.
- He is talking to a lorry driver, a catering manager, an insurance underwriter, a healthcare support worker, an aircraft de-icer and a train conductor.
- I have recently started my own pet sitting business, having been an underwriter in the finance industry for a number of years.