Final answer:
Underwriting is the process by which an insurer determines whether to issue a policy when an applicant applies for insurance.
Step-by-step explanation:
The process by which an insurer determines whether to issue a policy when an applicant applies for insurance is called underwriting. Underwriting involves evaluating the risk associated with the applicant and deciding on the terms and conditions of the insurance policy. This process helps the insurance company assess the potential losses and premiums for the policy.