Underwriting Factors

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In addition to listing concerns about the possible effects of a tobacco surcharge on low-income consumers and African-American consumers, Dillon said some have speculated that "insurers could use a high tobacco-rating factor as an indirect underwriting factor for other conditions."
Some companies actually have different underwriting guidelines based on how they find out about a particular underwriting factor.
One underwriting factor of particular interest, because of its size, is non-institutional non-welfare persons.
The quality of independent directors' oversight is a weighty underwriting factor. In merger and acquisition activity, the underwriter evaluates the level of expertise shown by the entire board and by the independent directors to determine the acceptability of an offer.
Insurers cannot deny, cancel or nonrenew a personal insurance policy solely on the basis of credit information without considering "any other applicable underwriting factor independent of credit information." Also, an insured's personal insurance renewal rates cannot be based solely on credit information without consideration of another applicable factor.
At the same time, the carriers and their representatives are careful to say, as Stokes does, that any underwriting factor is a valuable tool, "as long as it doesn't violate any of the state's statutory prohibitions, which clearly these don't."
So there's that underwriting factor that's already applied to them that there's a personal passion for this stuff."
The long-abandoned industry practice of using race as an underwriting factor means that blacks and other minorities paid higher premiums than whites.
"Using credit as an underwriting factor has allowed Progressive--and our agents--to offer more accurate and lower rates to more people," the company said in a statement.
Alcohol abuse is an important underwriting factor for younger applicants, because motor-vehicle accidents are the leading cause of death in a population under 49 years old and those accidents are predominantly caused by alcohol abuse, he said.
(4) Compliance with the ATR Rules: All of the mortgage loans, except for the business-purpose investor loans, were underwritten in accordance with the eight underwriting factors of the ATR rules.
The insurer, after evaluating the risks during the evaluation period, consequently, may deny or defer the application of person with HIV 'when presented with comorbidities, medical conditions or other risk factors, not on the basis of their being positive for HIV but on the basis of such comorbidity, medical condition or other risk factor which by itself alone [i.e., even without being HIV positive] would lead to the same underwriting decision based on the insurer's underwriting guidelines.'Meaning, an application may be denied not because of the HIV but because of other underwriting factors normally considered if the applicant did not have HIV.