What Is A CLUE Report For Insurance – Home and car insurance companies review your previous claims when determining your rates. This is a common practice among all insurance companies, but how do they get access to your pass insurance? This is where CLUC comes into the picture. It is a database that stores your insurance claim history, including the date of loss, type, and amount paid, as well as the policy number, claim number, and company name.
A Comprehensive Loss Underwriting Exchange (CLUE) holds the history of your property insurance claims for rentals, homes, and vehicles. LexisNexis Risk Solutions offers this database, and the information it holds is subject to Federal Fair Credit Reporting Act (FCRA) guidelines. With an underwriting guideline the FCRA lays out, a CLUE report shows up to seven-year homeowner/renters and auto insurance losses connected to a policyholder.
How Does A CLUE Report For Insurance Work?
CLUE data accumulates a lot, like credit reporting organizations collecting data from creditors concerning your credit history and usage. Daily and weekly, insurance companies report claims information to the CLUE database. However, not all insurance companies do this but most of them do.
Anytime you apply for a home insurance or car insurance policy, your insurer will review your records through customer reporting agencies to get your CLUE report. Using your report, insurers can evaluate what your premium will be. However, limited coverage and higher premiums are expected based on your CLUE report.
Who Has Access to a CLUE?
A CLUE can be accessed by insurance companies and insurance agents with the authority of the company. Insurance companies generally contribute to the data on your CLUE, which comes together and can be obtained when needed. In some cases, you may also be able to access your CLUE report.
Can I Get My CLUE Report?
Yes, you have the right to get your CLUE report yearly if you want to. Whatever your report shows affects your premiums, and for this reason, policyholders would like to review their CLUE regularly to make sure their loss information is proper. However, if there are any inaccuracies, correcting them may take time, but it makes sure you get the best coverage option.
Also, you have the right to dispute incomplete information on your record. To do this, you are to inform LexisNexis of the mistakes, and FCRA will work with your insurer to correct those errors.
How do Insurance Companies use a CLUE?
It is used to underwrite and determine rates for new policies. Insurers use your reports to determine your premiums and the level of risk you pose.
However, most insurers who renew existing policies do not check your CLUE for renewal reports. This is because they have loss histories for existing policyholders and their properties in their database.
What is the Information on MY CLUE Report?
A CLUE report contains policy information like name, policy number, date of birth, claim information, and covered property description. For homeowners, the report contains your property address and vehicle information for auto owners.
Other Information on a CLUE
Aside from the policy information, including loss history, stored in your report, there is no other information on a CLUE. It does not contain criminal records, credit reports, legal judgments, or civil lawsuits.
Why Insurance Companies Are Allowed to Obtain a Copy of a CLUE
Insurance companies are allowed to obtain a CLUE report due to several reasons. As previously stated, these reports are submitted by insurance companies and stored by FCRA and LexisNexis in a CLUE. Some of the reasons insurers access a CLUE include:
- When needed for underwriting insurance policies.
- When required by an authorized insurance agent or the insurance company.
How to Get My CLUE Report
There are different situations where you get entitled to check what your CLUE report is for free. One of which is if you get an “adverse action” notice from an insurer denying you coverage due to your CLUE report.
On the LexisNexis website, other reasons why you would be entitled to a free report are stated. However, the following are three main ways to get your CLUE report:
- Can be ordered online and mailed to you.
- It can be requested by mail just by downloading the form and following the proper steps.
- It can be ordered through phone calls.
After this is done, your report will be delivered to you for free if you are entitled to one and may require a fee if you are not.