Final answer:
Risk classification accurately defines an underwriter's assessment of information on a life insurance application.
Step-by-step explanation:
The term that accurately defines an underwriter's assessment of information on a life insurance application is Risk classification. Risk classification involves evaluating the risk associated with an individual's health, lifestyle, and other factors to determine the appropriate premium for their life insurance policy.
When underwriters assess the information on a life insurance application, they consider factors such as the applicant's age, medical history, occupation, and lifestyle choices. Based on this evaluation, the underwriter assigns a risk classification to the applicant, which helps determine the premium amount.
For example, someone with a clean bill of health, a safe occupation, and a healthy lifestyle may be classified as a low-risk applicant and may receive a lower premium. On the other hand, an applicant with pre-existing medical conditions or engaging in high-risk activities may be classified as a high-risk applicant and may pay a higher premium.