A Score Derived from an Individual's Credit History and Other

question 18

Multiple Choice

A score derived from an individual's credit history and other factors that is used by many auto and homeowners insurers for underwriting and rating purposes is called a(n)

• A)CLUE score.
• B)insurance score.
• C)expense ratio score.
• D)combined ratio score.

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Definitions:

Formal Instruments

Legally binding documents that record obligations, rights, or processes, such as contracts, deeds, or promissory notes.

Credit Issued

The provision of funds or goods before payment, based on the trust that payment will be made in the future.

Reasonable Source

A credible or reliable origin of information or data that is considered acceptable or trustworthy for making decisions or drawing conclusions.

Sold Receivables

The process of a company selling its receivables to a third party to improve its cash flow.