State Farm Auto Insurance Practice Test

If the loss occurred within the last 36 months, which of the following should be examined closely for eligibility?

1. The age of the driver

2. The type of vehicle involved in the loss

3. The driving history of all household members

4. The claim amount paid

The correct answer is: The driving history of all household members

The driving history of all household members should be examined closely for eligibility because driving history is a crucial factor in determining an individual’s risk profile for insurance purposes. Insurance companies assess drivers based on their past behaviors, including accidents, traffic violations, and claims history. If a loss occurred within the last 36 months, this would likely indicate recent driving trends that could influence future risk; therefore, reviewing the driving history of everyone in the household becomes essential. In contrast, while the age of the driver, the type of vehicle involved, and the claim amount paid are relevant factors, they do not directly reflect the ongoing risk associated with the individual's driving behavior in the same way that an examination of driving history does. These factors may contribute to the overall eligibility and risk assessment but are not as crucial in understanding how recent driving habits impact eligibility for coverage following a loss.