Chapter One Knowledge Check

Once an underwriter decides to accept a risk, they must establish an appropriate premium. They apply base rates established by actuaries, add loadings, and then multiply the final rate by the amount insured to obtain the premium. A loading applied by an underwriter 

When an insurer pays a claim to its insured under a contract of insurance  and attempts to recover the amount from a third party whom it believes is responsible for the damage, this is known as