Which factor can indicate a higher risk to insurers?

The correct answer is based on the idea that a previous insurance claim for a similar risk typically suggests a higher likelihood of future claims. Insurers assess risk by reviewing an applicant's past behavior and claims history. When a person has previously filed a claim for an incident that aligns with the type of coverage they are seeking, it serves as a warning sign to insurers. This pattern can imply that the applicant might be more prone to experience similar incidents again, which would increase the level of risk the insurer is willing to take on.

In contrast, having a long history of stability and financial responsibility, being located in an area with low crime rates, or possessing a high credit score are all indicators of lower risk. These factors demonstrate reliability and positive behavior patterns that insurers typically view favorably. Each of these elements suggests that the individual is less likely to file claims or experience losses, making them more attractive to insurance providers.