Question

A reason for using individual reporting agencies to gather informing about an insurance applicant is:

Answer 1

Using individual reporting agencies allows insurance companies to gather valuable information about applicants that may not be easily obtainable otherwise.

Step-by-step explanation:

Using individual reporting agencies to gather information about an insurance applicant has several benefits. One reason is that an applicant may have access to personal and medical information that the insurance company cannot easily obtain through other means. For example, an individual purchasing life insurance may have a better understanding of their family's health history than what the insurer can uncover through investigations. Likewise, a person applying for car insurance may be aware of their own driving behavior, which is challenging for the insurance company to assess.