Underwriter

The party who agrees to insure another on life or property, in a policy of insurance. He is also called the insurer. The title is almost exclusively confined to insurers of marine risks, and is derived from the method of obtaining such insurance formerly in vogue, usually as follows: A premium having been agreed upon between the insured and an insurance broker, a statement of such premium and of the ship or cargo, and the voyage or time, was written at the head of a sheet which was laid on the broker’s table. Then such merchants as were willing to insure such property on such terms subscribed their names to the statement above mentioned, stating the amount they were willing to insure; and so on until the desired amount of insurance was obtained.

1 Pars. Mar. Ins. 14.

The term is also used of bankers and other financial men who agree together to purchase an entire issue of bonds or other securities, usually at the end of a certain period. By reason of such underwriting, the bonds, etc., obtain a market value or a value as collateral security.