1. INSURER.
2. One who buys stock from the issuer with an intent to resell it to the public; a person or entity, esp. an investment banker, who guarantees the sale of newly issued securities by purchasing all or part of the shares for resale to the public. [Cases: Securities Regulation 11.18, 60.31. C.J.S. Securities Regulation §§ 69, 71, 199.]
“The term ‘underwriter’ derives its meaning from former British insurance practices. When insuring their cargo shippers would seek out investors to insure their property. The insurers would add their signatures and would write their names under those of the shipper; hence the term ‘underwriters.’ Both in terms of the insurance industry and the securities markets, the concept of underwriting has expanded significantly since its inception.” Thomas Lee Hazen, The Law of Securities Regulation § 2.1, at 57 (2d ed. 1994).
chartered life underwriter. An underwriter who has satisfied the requirements set forth by The American College (formerly The American College of Life Underwriters) to be designated a life insurance underwriter. — Abbr. CLU.
insurance underwriter.
1. INSURER.
— Also termed writer.
2. An insurance-company employee who is responsible for determining whether to issue a policy and the amount to charge for the coverage provided. [Cases: Insurance 1515.]
