Underwriting Information forms parts of the important element based on which underwriters make decisions. Underwriters derive information from several sources: -
· Producers – may supply additional information such as a personal evaluation of the applicant.
· Consumer investigation reports – Several independent reporting services investigate and provide background information on prospective insureds.
· Government records – such as Motor Vehicle Records, court records and public information also provide underwriting information.
· Financial rating services – There are firms involved in Credit rating business and provide such relevant information.
· Inspection reports – Loss control representatives of insurance company inspect the premises and operations of insurance applicants.
· Field marketing personnel – Field personnel often provide additional insights to the underwriters based on their personal observation.
· Claim files – Claim files maintained by insurance companies also provides valuable information in forming decisions as to renewal of insurance.
· Production records – The record of the producer who brings in business also gives information, which affects decision making.
· Premium audit reports – A premium auditor provides such information as whether the premium charged is adequate, etc., after examining insured’s book of records.
· Applicant’s or insured’s records – Valuable information can also be sought from insured’s records, appraisals, bills of sale, balance sheet and income statement.
CHAPTER 5 : UNDERWRITING
