Completing the Application, Underwriting, Delivering Policies, Contract Law
Under FCRA, if an insurer takes an adverse underwriting action (such as declining or rating an applicant) based in whole or in part on a credit report, what notice must the insurer provide to the consumer?
Answer and explanation
Answer: B. FCRA requires providing an adverse action notice detailing the reporting agency and right to dispute info.Source: FTC FCRA Insurers Guide — Adverse Action Notice
More completing the application, underwriting, delivering policies, contract law questions
- A producer tells an applicant, 'I can change the receipt so coverage starts today even though its stated conditions are unmet.' Which response is accurate?
- A statement in a life insurance application is treated as a representation rather than a warranty. What must an insurer show to contest the policy on that basis?
- A suspicious transaction involving a covered insurance product is identified from facts supplied by an agent. Who bears the direct federal obligation to report the suspicious transaction?
- A Texas life insurer asks an applicant to take an HIV-related test for underwriting. What must occur before the test?
- After signing an application but before policy delivery, the proposed insured begins taking a newly prescribed heart medication. What should the proposed insured do?
- An adult applies for a policy on his own life and names his sister as beneficiary. Whose signatures does the application ordinarily require?
590 Texas questions like this one.
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