Final answer:Consumer reports are utilized by underwriters to determine the risk of insuring an individual's life based on personal health history and lifestyle. This information helps categorize individuals into risk groups and establishes the cost of their insurance policy according to the principle of actuarial fairness.Explanation:Consumer reports requested by an underwriter during the application process of a life insurance policy are used to determine the risk factors associated with insuring the life of the applicant. The underwriter assesses the individual's health history, behaviors, and overall profile to identify how likely they are to file a claim. More information about an applicant's health history and lifestyle choices can help an insurer reasonably estimate the risk of insuring the individual.In addition, the collected information can be used to categorize the insured into different risk groups, a factor that plays a key role in determining the cost of the policy. This categorization is based on the principle of actuarial fairness, which postulates that a person's premium should reflect their risk as closely as possible. This process helps maintain the fundamental law of insurance: the average person's payments into insurance over time should cover the average person's claims, the costs of running the company, and leave room for the firm's profits.Learn more about Insurance Underwriting here:brainly.com/question/32360919#SPJ6...

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