Final answer:
The underwriter must investigate discrepancies between MIB codes and application information, requesting more details if necessary. They cannot ignore such inconsistencies. In loan applications, reassurance to banks can be provided by offering collateral, having a co-signer, or demonstrating reliable cash flow.
Step-by-step explanation:
If a home office underwriter obtains MIB codes inconsistent with information provided on the application, the underwriter is required to further investigate the discrepancy. They can do this by looking into the details of the MIB codes, which may involve requesting additional medical records or clarifications from the applicant themselves. The role of the underwriter is to assess risk accurately; hence, they must resolve any inconsistencies before proceeding with the policy issuance decision.
Ignoring the information is not an option as it could lead to issuing a policy based on false pretenses, which would be detrimental to the insurance provider. In a broader context, when someone is looking for a loan, there are several ways they can reassure a bank about repayment despite imperfect information.
They may offer collateral to secure the loan, provide a co-signer who agrees to repay if they default, or show a history of strong cash flow that demonstrates their ability to make regular payments. In all cases, transparency and evidence supporting their ability to repay are key factors that can sway a lending decision in their favor.