Legal Definitions - chartered life underwriter

A Chartered Life Underwriter (CLU) is an underwriter who has met the requirements set by The American College (formerly The American College of Life Underwriters) to be designated as a life insurance underwriter. They are responsible for assessing the risk of insuring a person's life and determining the appropriate amount of coverage and premium to charge.

For example, if someone wants to purchase a life insurance policy, a CLU will review their medical history, lifestyle habits, and other factors to determine the likelihood of them passing away during the policy term. Based on this assessment, the CLU will determine the appropriate amount of coverage and premium to charge.

The term "underwriter" comes from former British insurance practices where investors would insure cargo for shippers. The insurers would add their signatures and write their names under those of the shipper, hence the term "underwriters." In the securities market, an underwriter is a person or entity, such as an investment banker, who guarantees the sale of newly issued securities by purchasing all or part of the shares for resale to the public.