Final answer:
Underwriters use AC2, or Actuarial Control Cycle, to assess risk and determine appropriate rates and premiums for insurance coverage.
Step-by-step explanation:
Underwriters use AC2, which stands for Actuarial Control Cycle, in the insurance industry to assess and analyze risk when underwriting policies. AC2 helps underwriters determine appropriate rates and premiums for insurance coverage by considering various factors such as the probability of a claim occurring and the potential financial impact of that claim. With AC2, underwriters can make informed decisions about accepting or rejecting insurance applications and setting terms and conditions.