Which of the following refers to the evaluation of risks before offering insurance coverage?

The correct choice, underwriting, refers to the critical process in the insurance industry where risks are evaluated before coverage is granted. Underwriters analyze various factors, including the applicant's historical data, risk exposure, and other relevant information to determine how much coverage the applicant is eligible for and at what price. This process is essential to ensure that the insurance company can manage its risk effectively and maintain profitability while providing coverage to policyholders.

In contrast, assessment typically involves measuring the value or the potential loss of an asset, while adjusting pertains to the activities carried out by adjusters when a claim is made, including investigating and settling claims. Claim handling involves the overall process of a claim from the reporting stage through to the resolution, focusing on the claim's management rather than the prior evaluation of risk. Understanding underwriting enables field adjusters to grasp the fundamental principles that govern the insurance coverage offered to policyholders.