What does "character" refer to in bond underwriting?

In bond underwriting, "character" refers primarily to the financial history and overall reputation of the applicant. This assessment often includes looking into the applicant's past credit performance, payment history, and other indicators of their reliability and integrity in financial dealings. A strong character implies that the applicant is responsible, has good moral ethics, and adheres to obligations, which increases the underwriter's confidence in providing a bond.

The other aspects such as geographic location, industry type, and the age of the business, while they may be relevant to the overall underwriting process, do not specifically pertain to the "character" assessment. Character focuses on the individual's or organization’s trustworthiness and past behavior in handling financial matters, making it a critical component in determining their suitability for a bond.