In underwriting, what is the second step after agency underwriting?

• A. Risk analysis by the home office underwriter
• B. Implementing the decision
• C. Making the underwriting decision
• D. Regularly monitoring results

Answer: (A)

In underwriting, the important sequence starts with agency underwriting to gather information and do an initial screening, and the next step is the risk analysis by the home office underwriter. This is where the insurer’s guidelines are applied to the collected data, the risk is thoroughly evaluated, and factors like exposure, hazards, and pricing implications are reviewed. This deeper analysis determines whether the risk is acceptable, requires modifications, or should be declined, and it directly informs the final underwriting decision. Only after this analysis is completed does the underwriter proceed to make and implement the decision, with ongoing monitoring occurring after the policy is in force.