State Farm Independent Auto Practice Exam

The correct choice involves the collection of a comprehensive set of information necessary for underwriting an auto insurance policy. Typically, an insurance application requires personal details such as name, address, and date of birth to identify the applicant and assess risk factors. Vehicle information, including the make, model, year, and Vehicle Identification Number (VIN), is crucial as it helps in determining the value and risk associated with insuring that particular vehicle. Additionally, driving history, which encompasses the applicant's past driving records, any traffic violations, and accident history, is important in assessing the likelihood of future claims based on previous behavior.

Collecting this combination of information allows insurance companies to accurately evaluate the risk associated with providing coverage, set appropriate premiums, ensure compliance with state regulations, and ultimately make informed decisions regarding the issuance of policies. This comprehensive approach ensures that all relevant factors are considered to mitigate potential losses for both the insurer and insured.