What type of report provides information about the applicant's hobbies, habits, and financial status?

The correct choice is the type of report known as an Investigative Consumer Report. This report is particularly comprehensive as it not only includes standard details about the applicant's credit history and financial standing but also delves into more personal aspects, such as hobbies and habits. In the context of life insurance, this report is crucial because insurers often seek a thorough understanding of an applicant's lifestyle choices, which can directly impact risk assessment and premium calculations.

Understanding an applicant's interests and behaviors, alongside their financial background, allows insurers to evaluate potential risks more accurately. This means that, for example, engaging in high-risk hobbies may lead to higher premiums or even denial of coverage, depending on the insurer's policies.

Consumer Reports, while useful for general information on an applicant's credit and transaction history, do not offer the same detailed personal insights as Investigative Consumer Reports. Credit Reports focus solely on financial and credit-related information, lacking the comprehensive lifestyle context. The Life Insurance Report is not a standard term used within insurance practices; thus, it does not specifically encompass the diverse information needed when underwriting life insurance policies.