An insurance underwriter is evaluating a new life insurance application and determines that additional verification is necessary. The underwriter decides to request an Attending Physician's Statement (APS) from the applicant's doctor and order an Investigative Consumer Report regarding the applicant's character and lifestyle. To comply with federal regulations, which of the following requirements must be met when obtaining these specific sources of information? (Select all that apply)
- The insurer must secure the applicant's written authorization in accordance with HIPAA before obtaining the medical records.Answer
- The insurer must provide the applicant with a written disclosure stating that an investigative report may be ordered under the Fair Credit Reporting Act (FCRA).Answer
- CThe insurance producer must unilaterally amend the initial application to include any new medical findings discovered during the investigation.
- DThe insurer must issue an adverse action notice to the applicant before initiating the request for the consumer report.
Answer
The insurer must secure written authorization under HIPAA to obtain the medical records, and provide a written disclosure under the FCRA stating that an investigative report may be ordered.
Obtaining an Attending Physician's Statement requires the applicant's explicit written authorization to comply with HIPAA privacy regulations. Additionally, ordering an Investigative Consumer Report requires a prior written disclosure notifying the applicant that a background investigation may be conducted, in accordance with the Fair Credit Reporting Act (FCRA).
Step-by-Step Solution
Key Concept
Regulatory Compliance for Underwriting Information Sources
Estimated Time:1m 0s