An underwriter may request additional information about a particular risk from an outside source, which normally falls into two categories. Which are they?

• A. Consumer reports
• B. Investigative consumer reports
• C. Both consumer reports and investigative consumer reports
• D. None of the above

Answer: (C)

When underwriting, you often rely on information gathered from outside sources in two broad forms: consumer reports and investigative consumer reports. A consumer report is a standard file obtained from a consumer reporting agency that can include data such as credit history, employment verification, and other general information used to gauge risk. An investigative consumer report goes deeper and may involve interviews with people who know the applicant, furnishing more detailed insight into character, reputation, or lifestyle. Since both types can inform risk assessment, the correct approach recognizes that either or both may be used. The other options imply only one type or none, which doesn’t fit how underwriting commonly gathers external information.