A.D.D. Reports: Additional Driver Discovery
reports are run to see if there are undisclosed drivers in the household.
This is done to make sure that undisclosed drivers are either added to the
policy or excluded from coverage. For example, if Joe has one speeding
ticket and his roommate has a DUI and an at-fault accident, Joe's
insurance company will want to either rate according to the roommate's
record or exclude the roommate from coverage.
C.L.U.E. Reports: Comprehensive Loss Underwriting
Exchange reports are run to see how many claims a person has filed in a given
period of time. Insurance companies provide claims information to consumer
reporting agencies, which then offer CLUE reports to insurance companies to
determine eligibility or premiums for new
applicants.
Motor Vehicle Reports: The Department of Motor Vehicles
in any given state provides reports on accidents and traffic violations and
these are used to underwrite auto insurance.
Investigative Reports: The insurance company hires an
outside agency to investigate the background, character, and mode of living of a
prospective applicant. This can go as far as interviewing the applicant's
friends, family, and neighbors. Fortunately, the majority of personal lines
insurance carriers do not engage in this practice.
