Ala. Admin. Code r. 482-1-127-.08
Current through Register Vol. 43, No. 1, October 31, 2024
Section 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
Ala. Admin. Code r. 482-1-127-.08
New Rule: May 21, 2003, effective June 7, 2003. Filed with LRS May 28, 2003. Rule is not subject to the Alabama Administrative Procedure Act.Statutory Authority:Code of Ala. 1975, § 27-2-17.