State Farm Auto Insurance Practice Test

Which report is used to validate a prospect's driving information provided during the application process?

1. Loss History Report (LHR)

2. Motor Vehicle Record (MVR)

3. Credit History Report (CHR)

4. Previous Insurer Report (PIR)

The correct answer is: Motor Vehicle Record (MVR)

The Motor Vehicle Record (MVR) is the correct choice for validating a prospect's driving information during the application process. This report provides a detailed history of an individual's driving record, including traffic violations, accidents, and license status. Insurance companies rely on this information to assess the risk associated with insuring a driver. Since driving behavior is a critical factor in determining premiums, reviewing the MVR allows insurers to make informed decisions based on actual driving history rather than self-reported information. In contrast, the other reports serve different purposes. The Loss History Report (LHR) focuses on a customer's past claims with insurance companies, which does not provide verification of driving behavior. The Credit History Report (CHR) assesses an individual's creditworthiness and financial stability but does not relate to driving. The Previous Insurer Report (PIR) gives insights into a customer's insurance history, including policy details and any prior claims made but is not designed to verify specific driving information. Thus, the MVR is essential for accurately evaluating driving risks in the insurance application process.