What does 'prior submit' indicate in underwriting?

The term 'prior submit' in underwriting denotes a scenario where the underwriter must receive approval from a senior underwriter or management before proceeding with the terms of an insurance policy. This process does not involve a straightforward decision-making process; rather, it indicates that there is a required step of submission for review and consideration.

In this context, since 'prior submit' implies that underwriters are seeking validation or an endorsement from higher authority rather than making autonomous decisions on their own, it is important to understand that this approach is structured to ensure that more complex or higher-risk cases are evaluated with additional scrutiny.

This aligns with the correct answer, highlighting that there is a significant oversight mechanism in place within the underwriting process for specific cases, reflecting the importance of thorough risk assessment before finalizing any policies.