Which of the following statements is true about an insurer?

The statement about the insurer being responsible for underwriting risks is indeed accurate. Underwriting is a fundamental function of an insurance company that involves evaluating the risks associated with insuring a potential policyholder. This process helps the insurer determine whether to accept the risk, what terms to offer, and how much to charge for coverage.

An insurer assesses various factors, such as the applicant's health, lifestyle, and the nature of the insured risk, to make informed decisions. Proper underwriting helps ensure that the insurer can maintain its financial stability while offering policies and managing claims efficiently.

In contrast, the other statements either misrepresent the insurer's role or oversimplify its responsibilities. For example, while insurers aim to process claims promptly, they may not always pay all claims immediately due to the need for thorough investigation or documentation which may be required before settling claims. Similarly, the assertion that an insurer holds the policyholder's benefits does not accurately encapsulate the insurer's primary function, which is to provide coverage and not merely to hold benefits. Finally, although insurers do have financial obligations to policyholders, they cannot guarantee all payments under policies without considering the terms, conditions, and exclusions that may apply to each specific policy.