An individual applies for a life insurance policy but is denied coverage due to negative financial information found in a standard consumer credit report. Under the federal Fair Credit Reporting Act (FCRA), which of the following actions must the insurer take in this situation? (Select all that apply)
- Provide the applicant with a notice of the adverse action.Cevap
- BProvide the applicant with a complete physical copy of the credit report.
- Provide the applicant with the name, address, and phone number of the consumer reporting agency.Cevap
- DReport the applicant's denial of coverage to the state Department of Insurance.
Cevap
The insurer must provide a notice of the adverse action and supply the contact information for the consumer reporting agency.
Under the Fair Credit Reporting Act, when an adverse action (such as denying an insurance application) is taken based on a consumer report, the user of the report (the insurer) must notify the consumer. The insurer must also provide the name, address, and telephone number of the consumer reporting agency that supplied the report so the consumer can request a free copy to verify its accuracy and dispute any incorrect information.
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Under the FCRA, consumers have the right to be notified when an adverse action is taken against them based on a credit report, and they must be told how to contact the agency that provided the report.