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.
