CLUE:  Comprehensive Loss Underwriting Exchange

What is a C.L.U.E. report?
It is a database of personal information primarily relating to insurance claims on private property or on insured individuals/parties. The database is compiled and currently operated by Choicepoint Asset Co. of Georgia. C.L.U.E. is an acronym for Comprehensive Loss Underwriting Exchange. In brief, a C.L.U.E. report details the "claim history" of a given consumer.

Why should I know about my C.L.U.E. report?
Insurance providers use the C.L.U.E. database for obtaining information about both the consumer purchasing the property and property, itself. Experts agree that the filing of two claims within three years will increase the likelihood of a new proposed insured individual or new proposed insured home to significant risk of being rejected by insurance carriers. When Selling or Buying, it is wise to receive a current copy of the C.L.U.E. report to guarantee that you can obtain insurance coverage.

What type of personal information is made available on a C.L.U.E. report?
Generally the report includes information such as:
o Insurer's name
o Insurer's birth date
o Insurer's sex
o Current and previous addresses
o Claim History of the individual or the property
o Date of the claim
o Name of the insurance company involved
o Policy number
o Claim number
o Address
o Cause of loss amounts paid status of the claim
o Name of the insured and the claimant

Consumers are reporting that they are surprised that their history may include any calls made to their insurance representatives regarding a loss, whether a compensation claim was filed or not.

Frequently Asked Questions

Can I order a CLUE report on property I want to purchase?

No. CLUE reports are protected by the Fair Credit Reporting Act and can only be accessed by the owner or lender for the property. However, you can request that the current owner of the property order a CLUE report.

How can I find out what my loss history is?
Under the Fair Credit Reporting Act, you can request a copy of this information from ChoicePoint Consumer Disclosure, PO Box 105108, Atlanta, Georgia 30348-5108, or call toll free (866) 527-2600.

What if I find incorrect information on the report?
If you want to challenge the accuracy of specific information an insurance company provided or would like to enter a statement explaining the loss more fully, contact ChoicePoint's Consumer Center at (866) 718-7684. They will verify your information with the reporting insurance company and notify you of the results within 30 days.

If you feel an item on the report deserves an explanation, you can submit a personal statement which will be added to all future CLUE reports.

Why are insurance companies allowed to obtain a copy of my loss history report?
Under the Fair Credit Reporting Act, ChoicePoint is allowed to produce a CLUE report for the following insurance related purposes:

  1. When the consumer reporting agency has reason to believe a person or company intends to use the information in connection with the underwriting of a consumer's insurance policy. This includes situations where the consumer asks for an insurance quote or applies for insurance.
  2. When the request for the CLUE report is initiated by and at the request of the insurance company or agent.

Can an insurance company use loss history from the prior owner of a home in determining my eligibility to get insurance on the home?
Yes. There are no laws that prevent a company from using the prior owner's loss history in determining your eligibility for coverage. If a company can show a relationship between the prior owner's loss and the probability of a future loss to the home, they may use the information.

Can the insurance company report claims that are closed without payment to the CLUE database?
Yes. There are no laws that prohibit the reporting or use of claims closed without payment for underwriting or rating purposes.

Can the insurance company report an inquiry about a loss to the CLUE database when no request for the processing of a claim was made to the company?
Yes. There are no laws that prohibit the reporting or use of and inquiry about a loss for underwriting or rating purposes.

Does every company report all losses to the CLUE database?
No. Some companies choose not to participate. Losses filed with nonparticipating companies will not appear on a CLUE report.

Why do insurance companies use loss history?
Actuarial studies conducted by insurance companies have shown a correlation between a consumer's prior loss history and his/her future insurance loss potential. Along with other factors, this history could be considered when companies make their decisions to issue policies and determine premiums.

If you have any questions or need additional information about your rights as an insurance consumer, call theConsumer Hotline at 1-800-562-6900 or visit their website at www.insurance.wa.gov

 

CLUE is a database which includes homeowners policy claims information.  Insurance companies use the CLUE report in determining whether to issue or maintain new homeowner's insurance policies.  The report includes the buyer's claim history, and the history of claims regarding the residence.  If the buyer has filed too many claims, or the seller has filed too many claims for problems with the subject property, homeowners insurance may not be available.

What's worse, the insurance company can cancel a policy after the closing and transfer of title to the buyer.  How would you like to purchase a nice home without homeowner's insurance?  NEVER!  The insurer has 30 days from the application date to revoke the binder or cancel the insurance policy.

The top 3 reasons for canceling a policy, in addition to the number of claims filed, are:

So, what should you do?

This is an important problem and potentially costly.  This is a good reason to sign an agency contract with a buyer's real estate agent.  A buyer RealtorŪ knows how to protect you for CLUE problems and the other pitfalls related to the acquisition of real estate.  Happy house hunting, and watch those claims!

 

 

    Contact us for a free market analysis of your home:      

                                              Teri@BoulterProperties.com