South Carolina Personal Lines Practice Exam

What is NOT considered a source of insurability information for insurers?

1. Applicant's credit history

2. Applicant's employment history

3. Applicant's marital status

4. Applicant's driving record

The correct answer is: Applicant's marital status

In determining an applicant's insurability, insurers typically rely on a range of information that helps assess risk and make informed underwriting decisions. Sources of insurability information often include the applicant's credit history, employment history, and driving record. While an applicant's marital status may provide some insights into stability or potential risk factors, it is not routinely considered a primary source of information that insurers use to evaluate an applicant's insurability. Insurers are generally more focused on quantifiable data that directly correlates to potential risk. On the other hand, a credit history can indicate financial responsibility, an employment history can reflect income stability, and a driving record can reveal behaviors related to risk-taking, particularly for auto insurance. Thus, marital status is less relevant in the context of assessing insurability compared to these other factors.