If an underwriter suspects moral hazard,the underwriter may ask an outside firm to investigate the applicant and make a detailed report to the insurer.This report is called a(n)

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An inspection report is a detailed investigation report conducted by an outside firm hired by the insurer in order to investigate an applicant suspected of moral hazard. The report would provide information on the applicant's financial and personal background, alcohol and drug abuse, criminal history, and other factors that may increase the risk of a claim being filed. The underwriter would use this information to determine whether to accept or reject the applicant's insurance application.

If an Underwriter Suspects Moral Hazard,the Underwriter May Ask an Outside