Underwrite - Definition - Law Dictionary Home Dictionary Definition underwrite

Definition :

Underwrite, means to agree to purchase (all or part of a security issue) usually on a fixed date at a fixed price with the purpose or plan to resell by means of a public offering, UFITEC, S.A. v. Carter, 135 Cal Rptr. 607 (1977).

The expression 'underwrite' signifies 'accept liability under'. Although normally the expression 'underwrite' is used in marine insurance but the expression used in Chapter III of the Financial Powers of the Standing Order in this case specifically used the expression 'underwriting and revivals' of policies in case of Life Insurance Corporation and stated that it was the Divisional Manager who was competent to underwrite policy for Rs 50,000 and above, Life Insurance Corporation of India v. Raja Vasireddy Komalavalli Kamba, AIR 1984 SC 1014 (1018): (1984) 2 SCC 719: (1984) 3 SCR 350. (Contract Act, 1872, ss. 7 & 8)