Nebraska Property and Casualty Practice Test 2026 – Complete Exam Prep

A loss run report is indeed a document that details an insured’s loss history over a specified period, which is essential for assessing risk. Insurers use this report primarily to evaluate the frequency and severity of claims made by an insured party in the past. This information is critical when determining future premiums, coverage options, and even the decision to underwrite a policy at all.

By compiling data on claims, including dates, costs, and types of losses, the loss run report helps insurers understand the risk profile associated with a particular individual or business. A clearer understanding of past losses allows insurance companies to make more informed decisions about future insurance options and pricing.

The other options focus on different aspects of the insurance industry, such as financial performance, policy terms, or claims summary, but they do not capture the specific purpose and function of the loss run report as a tool for risk assessment.