What is the process of selecting and classifying risks known as?

The process of selecting and classifying risks is known as underwriting. This involves evaluating the potential risk associated with insuring individuals or entities. Underwriting is a critical function in the insurance industry as it determines the terms and conditions under which coverage will be offered, including premium rates and coverage limits.

In underwriting, insurance professionals assess various factors such as the applicant's risk profile, the likelihood of a claim being made, and the potential costs associated with that claim. This thorough evaluation ensures that each risk is measured accurately, allowing insurers to maintain their profitability while providing necessary coverage.

The other options relate to different functions within the realm of insurance but do not specifically refer to the selection and classification of risks. Adjusting pertains to the process of investigating claims and determining the payout. Surveying typically involves evaluating physical loss or damage in relation to a claim. Assessing can refer to the evaluation of loss or damage but is more general and does not specifically describe the risk classification process as effectively as underwriting does.