Chapter 08 Insuring Your Life You Decide Scenario / Choose a Persona / Persona Description / Question / Question / Question Insurance is a lot more complicated than Colin thought it was. Insurers have a fine line to walk: they need to adequately protect the losses of their policyholders, but they also have to make their premiums reasonable and attractive. They must decide who they will and will not insure, as well as the premium to charge each individual prospective policyholder. A great deal of math and statistics are involved in categorizing people's risk of loss. What process do insurance companies use to make decisions on who to insure and what to charge them? A process called underwriting. A process called risk assumption