In the context of insurance, the terms “signed line” and “written line” refer to specific aspects of an insurance policy.
- Signed Line: The signed line represents the maximum amount of coverage that an insurance company is willing to provide for a particular risk or line of business. It is the total capacity or limit that the insurer is willing to underwrite. When an insurance policy is issued, it is usually accompanied by a “signed line” that indicates the insurer’s commitment to provide coverage up to a specific amount. The signed line represents the insurer’s financial capacity and willingness to assume risk.
- Written Line: The written line refers to the actual amount of insurance coverage that an insurance company has provided or “written” for a specific policy or contract. It represents the total sum insured or the policy limit that has been agreed upon between the insurer and the policyholder. The written line indicates the specific level of coverage that the insured party has purchased or that the insurer has agreed to provide.
To summarize, the signed line represents the maximum capacity or limit that an insurer is willing to underwrite, while the written line refers to the actual amount of coverage provided in a specific insurance policy.
