Utah Admin. Code R590-219-4 - Insurer's Obligation If Credit Information Is Used

(1) An insurer shall comply with the federal Fair Credit Reporting Act, 15 U.S.C. 1681 et seq.

(2) If an adverse action is taken, an insurer shall provide to the applicant or insured:

(a) the identity, telephone number, and address of any consumer-reporting agency from which a credit report was obtained;

(b) notification of the applicant's or insured's right to receive a free copy of their credit report from the consumer -reporting agency for 60 days from the date of application; and

(c) notification of the applicant's or insured's right to file a dispute with the consumer-reporting agency and have erroneous information corrected in accordance with the Fair Credit Reporting Act.

(3)

(a) After an adverse action is taken, if it is later determined that the initial information in the credit report was incorrect, the insurance company, at the request of the applicant or insured, shall underwrite or rate the policy again using the correct information.

(b) If the insurer determines that the insured has overpaid premium, the insurer shall refund to the insured the amount of overpayment calculated back to the shorter of either the last 12 months of coverage or the actual policy period.

(4) An insurer shall establish procedures that allow a consumer or an insurance producer to request that a person's credit history or score be re-examined if a correction has been made to the consumer's credit report.

(5) An insurer may not penalize a consumer on a new or renewal policy issued on or after the effective date of this rule based on:

(a) identity theft;

(b) a credit inquiry not initiated by the consumer;

(c) an insurance-related inquiry;

(d) a medical related collection account, if the information can be identified on a credit report; and

(e) multiple lender inquiries, if captured on a credit report as being from the home mortgage industry and made within a 30 -day period, unless only one inquiry is considered.

Notes

Utah Admin. Code R590-219-4

Amended by Utah State Bulletin Number 2022-17, effective 8/22/2022