Bank underwriting[ edit ] In bankingunderwriting is the detailed credit analysis preceding the granting of a loanbased on credit information furnished by the borrower; such underwriting falls into several areas: Consumer loan underwriting includes the verification of such items as employment history, salary and financial statements ; publicly available information, such as the borrower's credit history, which is detailed in a credit report ; and the lender's evaluation of the borrower's credit needs and ability to pay.
For example, in underwriting automobile coverage, an individual's driving record is critical.
The information used to evaluate the risk of an applicant for insurance will depend on the type of coverage involved. By now you must realize that tomorrow is not promised to any of us. Simply complete the free life insurance form on this website today to help you review various quotes.
High-risk Applicants In The Underwriting Process Because there are so many different factors that the insurance company reviews with each application, there are dozens of different things that could cause you to be a high-risk applicant.
This practice, which is typically justified as the reward for the underwriter for taking on the market risk, is occasionally criticized as unethical, such as the allegations that Frank Quattrone acted improperly in doling out hot IPO stock during the dot com bubble.
This is especially the case for certain simpler life or personal lines auto, homeowners insurance. Each insurance company is differentand they will all have varying underwriting policies which can drastically impact the results and rates that you may receive.