PSI Ohio Insurance Practice Exam

Which item is typically NOT included in a consumer report used to determine insurance eligibility?

1. Credit history

2. Employment records

3. Medical underwriting exam

4. Claims history

The correct answer is: Medical underwriting exam

A consumer report is a comprehensive document that insurers use to evaluate an individual's risk profile when considering their eligibility for insurance coverage. Such reports typically include various factors that provide insights into the applicant's financial responsibility and reliability. The presence of credit history in a consumer report helps insurers assess how well an individual manages debt and finances, which can correlate with their likelihood of filing claims. Employment records may also be considered to verify stability and predict future income potential. Additionally, claims history is often included, as it reflects past behaviors in seeking insurance payouts, which can indicate how likely a person might be to file claims in the future. The medical underwriting exam, on the other hand, generally is not part of a consumer report used for determining insurance eligibility. Instead, it is a separate process that is typically reserved for life and health insurance, where specific medical assessments and health information play a crucial role in underwriting decisions. This distinction clarifies why medical underwriting exams are not included in the consumer report, as they are usually obtained directly from medical professionals or healthcare providers rather than being part of a standard credit or consumer history evaluation.