Definition

To provide financial support or guarantee for a project, often in the context of insurance or investments.

Example

The company decided to underwrite the new insurance policy for small businesses.

Tense Forms

Conversation

I heard you wanted to underwrite that new insurance policy.

Yeah, I think it could really benefit my clients.

That makes sense; having someone reliable to underwrite it is important.

Absolutely! It gives everyone more confidence in the coverage.

Synonyms & Antonyms

Definition

To take on financial responsibility for something, such as guaranteeing a loan or insurance policy, or agreeing to buy unsold stocks at a set price.

Example

The bank decided to underwrite the new housing project to ensure its success.

Tense Forms

Conversation

Did you hear about the new play opening next month?

Yeah, I heard they need someone to underwrite the production costs.

I wonder if anyone will step up to help them out.

Root Explanation

Underwrite → It is formed from "under-" (meaning beneath or below) and "write" (from Old English "writan", meaning to write). The word "underwrite" means to write beneath, typically referring to the act of signing one's name below a document to indicate support or guarantee.

Memory Tip

Think of someone writing their name 'beneath' a document to show support or guarantee — 'under-' means beneath, and 'write' means to write.

Visually Confused Words