underwrite
/ʌndəˈrʌɪt
/ /ˈʌndərʌɪt /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: the policy, underwritten at Lloyd’s, indemnifies trustees against loss arising from wrongful acts (as noun underwriting) the individuals whose assets support underwriting at Lloyd’s...
- 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 the terms of an insurance policy: the insurance companies have underwritten just over half the risk...
- 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) pledge to buy all the unsold shares in (an issue of new shares): the purchase is being paid for by a share issue, which has been underwritten...
- 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, in part, the construction of a ship...
- 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.
Synonyms
sponsor, support, back, insure, indemnify, provide security for, take the risk for, subsidize, contribute to, pay for, provide capital for, finance, fund;
sanction, agree to, approve, confirm, ratify, validate, authenticate, certify, seal, guarantee, warrant, accredit
informal foot the bill for, pick up the tab for
North American informal bankroll
3 archaic Write (something) below something else, especially other written matter: each subscriber should underwrite his reason for the place he allots his candidate
