Tom and Tammy Evans were ready to purchase a home. The home was to ser

Tom and Tammy Evans were ready to purchase a home. The home was to serve as collateral for their mortgage loan. Two insurers declined to insure the home, citing “an adverse CLUE report.”

Why would an insurer reject a homeowners insurance application because of an adverse CLUE report?
A) because the previous owner had defaulted on the mortgage loan
B) because the home is located in an area where the zoning law had been changed
C) because there had been property insurance claims filed on the home’s previous owner
D) because the home is located in an area that does not have a certified fire department

ANSWER

Answer: C