Underwriting Questions and Call
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Throughout the underwriting process, and especially during the review of the due diligence materials, the underwriter will create a list of questions that they want to ask the insured and its advisers. These questions can be on anything but will generally centre around potential issues that have been identified in the review of the materials. The underwriter asks these questions in order to check whether the insured is aware of these issues and how important it thinks these issues are. If it is clear that there is an issue that the insured has not looked into then this issue is likely going to be excluded in the final insurance policy.
These underwriting questions will be sent to the insured during the underwriting process in a number of tranches. It is up to the insured to respond to these questions with fulsome written responses. The more detailed the written responses are, the less time the insurer will need to spend addressing the questions on the call.
The underwriting call is a conference call scheduled towards the end of the underwriting process. On the underwriting call will be the insured and all of its advisers as well as the insurer and any legal advisers to the insurer. The call will be managed by the insurance broker. On the call, the insured will give an update on the current status of the transaction and when it is likely they will sign the agreement. This is important for the insurer to know since the underwriting process often culminates at the same time as the transaction. The insurer will also ask further questions on the written responses given to the underwriting questions. This additional questioning builds the comfort the underwriter has in the transaction and detailed answers will ultimately lead to a better coverage position in the policy.