Underwriting
How Commercial Underwriters Review Applications
Understanding how underwriters actually review commercial applications — what they look at, in what order, and what causes them to stop and send an additional information request — is one of the most valuable pieces of knowledge a commercial agent can have. Submissions structured with this knowledge in mind get quoted faster, receive better terms, and generate fewer AI requests.
The underwriter's first 90 seconds
When an underwriter opens a new submission, they are answering two questions before they do anything else: "Is this a class of business we write?" and "Is this submission complete enough to work with?" If the answer to the first question is no, the submission is declined immediately. If the answer to the second is no, it goes to the AI queue. The cover note and the first page of the ACORD 125 determine both answers in under 90 seconds. A submission that survives those first 90 seconds — clear class of business that the underwriter writes, complete enough to begin rating — moves to the underwriting desk for a full review.
What underwriters review on each ACORD form
ACORD 125
Named insured and business type — confirms whether this is a class the underwriter writes. Prior carrier and reason for shopping — has this account been non-renewed, or is this a competitive quote? Loss history — how many losses, what types, what amounts. Years in business — experience factor.
ACORD 126 (GL)
Description of operations — the most scrutinized field in any GL application. Classification codes — do they match the described operations? Revenue — does it match the operations described? Subcontractor cost for contractors — what percentage of revenue is subcontracted and to whom? Premises — are all locations listed?
ACORD 130 (WC)
Class codes — do they match the described employee job functions? Payroll by code — is the total consistent with the revenue figure on ACORD 125? EMR — above or below 1.0, and what is the trend? Prior WC carrier — any gaps in coverage? Officer exclusions — completed correctly for the state of operation?
What triggers an additional information (AI) request
→Missing loss runs — the underwriter cannot rate without claim history
→Vague operations description — "various services" or "contractor" without specifics
→Revenue inconsistency — ACORD 125 and ACORD 126 show different figures
→Missing subcontractor cost on a contractor account
→Loss history with no explanation — losses present but no agent narrative about cause or corrective action
→Construction type or protection class missing on a property submission
→EMR above 1.2 with no context or trend information
What causes a declination
✕Class of business outside the underwriter's appetite
✕Loss frequency too high for the premium volume (typically 3+ losses in 5 years at a standard market)
✕EMR above program eligibility threshold
✕Prior non-renewal or cancellation with insufficient explanation
✕Adverse loss type — structural fire losses, mold contamination, multi-plaintiff product liability
✕Prior carrier unable to provide loss runs (sometimes a flag itself)
Submit what underwriters need the first time
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