Meaning of the word underwrite in English

What does underwrite mean in English? Explore the meaning, pronunciation, and specific usage of this word with Lingoland.

underwrite

US /ˈʌn.dɚ.raɪt/
UK /ˌʌn.dərˈaɪt/

Verb

1.

to sign and accept liability under (an insurance policy), thus guaranteeing payment in case loss or damage occurs

Example:
The company agreed to underwrite the new insurance policy.
Many insurers are unwilling to underwrite policies for high-risk individuals.
2.

to support financially

Example:
The government agreed to underwrite the project with a substantial grant.
The bank will underwrite the bond issue.