Question

Which one of the following is an underwriting evaluation tool that uses Global Positioning System (GPS) tracking to collect and analyze data regarding driver behavior and vehicle use?

1) Telematics
2) Actuarial tables
3) Risk assessment
4) Claims management

Answer 1

Telematics is the underwriting evaluation tool that uses GPS tracking to collect and analyze data regarding driver behavior and vehicle use.

Step-by-step explanation:

The underwriting evaluation tool that uses Global Positioning System (GPS) tracking to collect and analyze data regarding driver behavior and vehicle use is Telematics.

Telematics combines telecommunications and informatics to obtain information about vehicles. It uses GPS technology to track and monitor driver behavior, including speeding, hard braking, and acceleration. This data is then used by insurance companies to assess risk and determine insurance premiums.