Some underwriters are particularly picky about
certain underwriting factors, and simply won't issue a policy at all if they know that a certain type of risk is present.
Some people have argued that
certain underwriting factors such as insurance credit scoring have little enough relevance that they're not appropriate, but those are still risk - based factors.
Not exact matches
The issue is that
certain other
underwriting factors like claims history or scoring tier combined with the coastal risk might make a particular policy ineligible per the
underwriting standards.
Some life insurance companies are better at
underwriting certain risk
factors such as asthma, heart disease, cancer history, diabetes, rheumatoid arthritis, and many other conditions.
If
certain negative risk
factors show up during the information - gathering phase or if not enough positive risk
factors are present, you may need to proceed with full
underwriting to get approved, especially at the best rates (preferred or super preferred).
When
underwriting the finance or purchase of a commercial real estate loan, a
certain «Loan to Cost» (LTC) or «Loan to Value» (LTV) percentage is given as a limiting
factor to the proceeds of that loan; however, LTC and LTV are very different and it's extremely important to understand the distinctions between the two.