Underwriting
glossary

A driver schedule is the list of drivers and vehicles a commercial auto account puts on the road, with the fields a carrier uses to rate and underwrite the risk.

A workers' compensation insurance multiplier that adjusts base premiums based on an employer's actual loss history compared to industry expectations.

A historical record of insurance claims filed against a policy, used by underwriters to evaluate risk, validate pricing, and assess an applicant's loss experience before quoting or renewing coverage.

A NAICS code is the six-digit federal classification of an insured's business activity that drives appetite, rating, and risk selection in commercial P&C underwriting.

Nuclear verdicts are jury awards of $10 million or more. They set the loss-cost ceiling on commercial auto, general liability, and excess casualty.

Sustained upward pressure on claim costs driven by jury sentiment, litigation funding, and broader societal trends, raising casualty loss reserves and pricing benchmarks.

A statement of values (SOV) is the schedule of every insured property location and its replacement-cost value that commercial property underwriters price from.

Straight-through processing (STP) is underwriting that moves a submission from intake to a decision with no manual touch. In commercial P&C, auto-clear the clean risks and route exceptions to a human.

Submission clearance is the initial gating process in commercial underwriting where incoming submissions are validated for completeness, broker eligibility, appetite alignment, and duplicate conflicts before formal risk evaluation begins.