What must be ordered on applicants before binding a policy?

In the context of binding an insurance policy for manufactured homes in Georgia, it is essential to obtain credit history information to determine the applicant's insurance score. This score helps insurers assess the risk associated with insuring a particular individual. Insurers typically use credit history as a predictive measure of future claims, as various studies have shown a correlation between an individual's credit information and their likelihood of filing insurance claims.

By analyzing credit history, an insurer can identify patterns that may indicate a higher or lower risk profile. This could influence not only the acceptance of the policy but also the terms, coverage amounts, and premiums set for the policy. Understanding this aspect of underwriting is crucial for both insurers and applicants, as it establishes a foundation for the financial aspects of the insurance agreement.

While verifying prior insurance, looking into accident history, and conducting home inspections are relevant information aspects in the underwriting process, they do not carry the same weight or standardized necessity as obtaining credit history information, which is integral to determining the suitability and pricing of an insurance policy.