Ala. Admin. Code r. 482-1-127-.08 - Notice Requirements
(1)
Any rejection, refusal to quote or application for insurance extended over the
Internet, by telephone, or in person shall comply with the notice requirements
of 15 U.S.C. §
1681.
(2) For purposes of the notices required by
the Fair Credit Reporting Act,
15 U.S.C. §
1681, an adverse action includes any act
detrimental to the applicant based upon the information contained in or derived
from an applicant's credit history and may include by way of illustration any
of the following actions:
(a) Refusing to
write an insurance policy for an applicant.
(b) Refusing to quote a premium.
(c) Any increase in an existing
premium.
(d) Any premium for an
initial policy or application for insurance that is higher than the premium
that otherwise would have been paid if not for the information in or derived
from an applicant's credit history.
(3) If an insurer takes any type of adverse
action that is based at least in part on information contained in an
applicant's credit history, the insurer is required by
15 U.S.C. §
1681 to notify the applicant. The
notification may be done in writing, orally or by electronic means. It must
include the following:
(a) The name, address
and telephone number of the credit reporting agency (Including a toll-free
telephone number if it is a nationwide credit reporting agency) that provided
the report.
(b) A statement that
the credit reporting agency did not make the adverse decision and is not able
to explain why the decision was made.
(c) A statement setting forth the applicant's
right to obtain a free disclosure of the applicant's file from the credit
reporting agency.
(d) A statement
setting forth the applicant's right to dispute directly with the credit
reporting agency the accuracy or completeness of any information provided by
the credit reporting agency.
(4) If an applicant has a dispute concerning
any adverse action, a complaint may be filed with the Alabama Department of
Insurance.
Author: Commissioner of Insurance
Notes
Statutory Authority: Code of Ala. 1975, § 27-2-17.
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