Why might an underwriter request a credit report?

• A. To assess driving history.
• B. To evaluate the likelihood of future claims based on credit.
• C. To check building construction.
• D. To determine the property owner's age.

Answer: (B)

Underwriting uses information that helps predict future loss costs. A credit report is used because a person’s credit history often correlates with how likely they are to file claims and how large those claims might be. In other words, credit-based indicators help estimate future risk, which is why insurers request the report to inform underwriting decisions and pricing. Driving history would come from a driving record, building construction from inspections or appraisals, and age isn’t determined from a credit report, so those details aren’t the purpose of requesting a credit report.