FRIDAY, NOVEMBER 4, 2011
by Edward Sneneh, Illinois Auto Insurance Agent in Chicago
CLUE or C.L.U.E report is the acronym from Comprehensive Loss Underwriting Exchange. CLUE is an intelligence insurance claims data report about property and people that is prepared by a company called ChoicePoint, (acquired by LexisNexis in 2008), located in Alpharetta, near Atlanta, Georgia. The company, ChoicePoint, collects and tabulate public and private information about insurance claims made by individuals, groups, and businesses. The reports are sold to private insurers, employers, and government agencies for a fee. The information is used for underwriting property and casualty insurance contracts (property insurance, auto insurance, homeowners insurance, etc.); background checks, and other specific causes.
ChoicePoint was purchased in February 2008 by LexisNexis which is the main provider of information solutions made particularly for professionals in the legal, finance & risk management, government & law enforcement, accountancy and educational markets.
Insurance Information Contained in CLUE Reports
CLUE reports include information about insured people names, dates of birth, drivers license number, property address, property types & VINs, individuals and claims nature and amounts paid over the past 7 years. No other sources of information, credit reports, criminal records, judgment or lawsuits are incorporated into C.L.U.E. reports.
Insurers who submit information about their clients are allowed to use CLUE reports as well. If an insurer is not participating then they cannot provide or get information for such purposes.
Insurance Companies use CLUE report on properties to issue homeowners insurance policy, for example, or vehicles to issue auto insurance policy. A CLUE report will show if a particular property suffered from fire loss or water damages or theft. Also, a CLUE report will show if Mr. Y has filed theft claims on his homeowner policy in what city and state. When it comes to auto insurance underwriting, insurance companies will be able to tell how many times a comprehensive claim (theft, water damage, hit and run, etc) were made against a particular vehicle or by a particular auto insurance applicant.
Other organizations such as real estates brokers may use C.L.U.E. Home Seller's Disclosure Report, which may offer a real estate broker to achieve a greater comfort standard as they try to have a potential buyer making an offer on a property for which the loss history is known. Also, a CLUE can also car dealer show accidents for a particular vehicle. While CLUE reports are available for vehicles, the industry has substituted that with the more commonly used CARFAX.
Limitations of Using CLUE Reports:
Insurance companies can use CLUE reports only in of underwriting (issuing) a policy. This entails cases when the customers request insurance quotes or apply for auto or homeowners insurance.
Wrong Data on CLUE.
In some situations CLUE reports may contain inaccurate or simply wrong information. To correct that the party has to submit a written request to ChoicePoint, which is obligated by law to take corrective decision based on further verified information provided from the insurer. If no verified information is provided by insurer, ChoicePoint is obligated to delete the wrong entries.
Individuals can also get a copy of their own CLUE reports or CLUE reports for properties they own by addressing LexisNexis. To order a copy of your/ your property claims history report, write, call or visit.
LexisNexis Consumer Disclosure Center
P.O. Box 105295
Atlanta, GA 30348