State Farm Auto Insurance Practice Test

What should you do if a reported accident does not appear on the Loss History Report (LHR)?

1. Assume it is a minor accident

2. Get details of the accident and assess fault

3. File an incident report immediately

4. Document the incident in the MVR

The correct answer is: Get details of the accident and assess fault

In the context of an accident that does not show up on the Loss History Report (LHR), obtaining details of the incident and assessing who is at fault is crucial. This approach allows for a thorough understanding of the circumstances surrounding the accident, which can help in managing future claims or disputes. It enables an individual or insurance representative to collect relevant information about the incident, such as the date, time, location, and parties involved. By assessing fault, you can determine accountability, which is significant for insurance purposes as it influences how claims are processed and premiums may be affected. While it might be tempting to assume the accident was minor or to document it in other systems, gathering details and evaluating responsibility ensures a more accurate historical account of incidents that could lead to potential claims. This is especially important in insurance practices where even seemingly minor accidents can have implications on policyholder behavior and coverage in the future.