Underwriting Guide

What Does Underwriting Guide Mean?

An underwriting guide is a manual that outlines the policies, regulations, and procedures that underwriters must follow in their work. It addresses a broad range of topics and issues that underwriters may encounter during the underwriting process.

Insuranceopedia Explains Underwriting Guide

An underwriting guide may cover a variety of topics, including identity theft procedures, denied applications, incomplete applications, the Equal Credit Opportunity Act, 36-month coverage, borrower claim history, borrower exposure, and more. When an applicant’s risk profile falls outside what the guide allows, the application gets declined, which is how many homeowners end up shopping for high-risk homeowners insurance instead of standard coverage. The goal is to ensure that underwriters know how to handle any situation they may encounter during the underwriting process. These guides are similar to those in other professions, as they explain rules and best practices, and guide how to proceed in various circumstances. Because each insurer writes its own guide, the same person can be approved at standard rates by one carrier and declined by another, so it helps to compare quotes from the best life insurance companies before settling on a policy.