What can an insurer do based on the underwriting process results?

The underwriting process is a critical step for insurers to assess the risk of providing coverage to an applicant. Based on the results of this process, an insurer has the authority to adjust the policy's terms through amendments. This is done to ensure that the policy accurately reflects the risk profile of the insured individual.

For instance, if an underwriter identifies that the applicant has higher-than-average risk factors, they may choose to amend the terms to include higher premiums, exclusions for specific conditions, or limitations on coverage. This adjustment allows the insurer to manage risk effectively and ensure the policy is sustainable and equitable based on the information gathered during underwriting.

Other options like mandating strict payment terms or automatically increasing coverage limits do not typically result from underwriting findings and are not standard practices based on risk assessment. Cancelling a policy without notice could have legal repercussions as well and is not a standard procedure following the underwriting process. Therefore, the ability to amend policy terms stands out as the most relevant and accurate outcome of underwriting results.