Question

what are the rationales of insurers using an applicant record

Answer 1

the rationales of insurers using an applicant record is :

in case of helath , disability ,age and health insurance ;

1. the medical records of the applicant needs to be checked so that the insurer can be aware of any kinds of critical illnesses , age, sex, occupation and occupation history, financial condition ,personal habits of drinking smoking, alcohol ,size of policy and previous records.

the rationale of such a medical check is required such that the insurers can calculate the value of the premiums, and a perosn will a very critial illness is not granted coverage and the age and the basic health reocrds of an individual are studied before covering them for helath insurance.  

if property is insured :

the type of property, value of property, condition of property, location of property, upkeep of property, prior losses associated with the property.

the rationale of using such reocrds that verify the value of the property so that teh coverage is not more than the value of the property that is insured.

the applicants credit history, criminal record is checked to make sure that they are not trying to obtain excessive coverage or are turned down by other insurers.