Choosing between validation and underwriting authority

Both validation and underwriting authority provide mechanisms to stop the progress of a policy transaction. In the base configuration, validation is checked before underwriting authority.

Use validation to prevent the progress of policy transactions that nobody can sign off on. Validation checks for:

• Missing or inconsistent data – Including things like a vehicle on a personal auto policy without a VIN at bind time, as well as conflicting coverages or terms.
• Structurally inappropriate policies – For example, some insurers do not ever permit a personal auto policy with no vehicles.

Use underwriting authority to restrict who can progress a policy transaction that at least somebody in the organization could sign off on. If only certain people within the insurer organization can approve writing a policy in California, then use an underwriting rule.

However, if the insurer will never write a policy in the state of California under any circumstances, then use a validation rule.