An applicant for a life insurance policy is approved, but the underwriter assigns a higher premium rate than standard due to adverse financial history found in a routine credit report. Under the Fair Credit Reporting Act (FCRA), which of the following actions is the insurer legally required to take?
- Provide the applicant with the name, address, and phone number of the credit reporting agency that supplied the report.Cevap
- BSend a complete and certified copy of the credit report directly to the applicant alongside the policy.
- CNotify the state Department of Insurance and receive authorization before finalizing the higher premium rate.
- DWait a mandatory 30-day period before issuing the policy to allow the applicant time to dispute the findings.
Cevap
Provide the applicant with the name, address, and phone number of the credit reporting agency that supplied the report.
Under the FCRA, if an insurer takes an adverse action (such as denying coverage or charging a higher premium) based on a consumer report, the insurer must provide the applicant with the name, address, and toll-free telephone number of the consumer reporting agency that furnished the report. This ensures the consumer knows where the negative information originated.
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FCRA Adverse Action Notice Requirements
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