Is it true or false that underwriters are expected to foresee all possible circumstances?

The statement that underwriters are expected to foresee all possible circumstances is false. Underwriters play a crucial role in assessing risk and making decisions based on the information available to them, including the applicant's history, current financial status, and any relevant market data. However, it is impossible for any underwriter to predict every potential outcome or circumstance that could arise from an insurance policy.

The underwriter's role is to analyze the presented information, identify risks, and make informed decisions. This involves using experience, guidelines, and actuarial data, but not an expectation to foresee every potential future event. The nature of risk in insurance means that there are always unknown factors and scenarios that could impact the outcomes of policies. Thus, the expectation that they foresee all possible circumstances does not reflect the practical realities of underwriting in the insurance industry.