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Legal Definitions - writer
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Definition of writer
Definition: A writer is a person or institution that sells securities or futures option contracts. In the context of insurance, a writer can refer to an underwriter who determines whether to issue a policy and the amount to charge for the coverage provided.
Example 1: A stockbroker who sells shares of a company's stock to investors is a writer of securities.
Example 2: An insurance underwriter at an insurance company reviews an application for a new policy and decides whether to approve it and at what premium rate.
These examples illustrate how a writer can be involved in the sale of financial products, such as securities or insurance policies. A writer may work for a brokerage firm, investment bank, or insurance company, and their role is to facilitate the sale of these products to investors or policyholders.
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Simple Definition
A writer is someone who sells securities or futures option contracts. They can also be an insurance underwriter, which means they work for an insurance company and decide whether to give someone insurance and how much it should cost. Sometimes, an underwriter buys stock from a company and sells it to the public. A chartered life underwriter is someone who has met certain requirements to be called a life insurance underwriter.
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