What must an underwriter analyze if the risk presented by the client is deemed unacceptable?

The analysis an underwriter must make when the risk presented by the client is deemed unacceptable primarily focuses on the information gathered to determine a premium. This information typically includes various factors such as the client’s history, the nature of the risk, and the likelihood of future claims. When faced with an unacceptable risk, the underwriter needs to reassess this data to decide if there's a way to adjust the coverage, alter the terms of the policy, or modify the premium to make the risk acceptable, either to the insurer or through additional risk mitigation measures. By thoroughly analyzing all the gathered information, underwriters are better equipped to make informed decisions about whether to proceed with the insurance application or to suggest alternative insurance solutions.

On the other hand, while the client’s past claims can certainly impact risk assessment, they are just one component of the broader range of data necessary for determining premium. Similarly, the cost of the insurance policy is a result of the underwriting process, rather than a point of analysis in response to unacceptable risk. Market conditions may influence underwriting strategy but are not specifically analyzed when a risk is deemed unacceptable. Therefore, the correct choice centers on the comprehensive review of all relevant information utilized to establish the premium.