You are applying for homeowners' insurance,and the application for coverage asks if you have ever been convicted of a crime. Why does the insurer care if you have a criminal record?
A)It tarnishes the company's image to sell to former convicts
B)By law, convicted criminals are not entitled to own property, and thus cannot be issued property insurance policies
C)A criminal background, especially one involving destruction or theft of property, indicates that you are a potential moral hazard
D)Underwriters are notorious for asking personal questions

Question

Quizplus · Accepted Answer

A criminal background involving theft or destruction of property suggests that the applicant may be inclined to engage in risky behavior or commit similar crimes that could result in property damage or loss. This may make them a higher risk for the insurer, as they may be more likely to file claims or cause damage to the insured property. Therefore, the insurer may take a closer look at their application or possibly deny coverage altogether.

You Are Applying for Homeowners' Insurance,and the Application for Coverage