§ 10-4-616 — Disclosure of credit reports

(1) (a) Insurers using new or updated
credit information in insurance underwriting or rating shall notify applicants or
policyholders that their credit information will be used for underwriting or rating.

(b) When an insurer uses a producer for such disclosure, the insurer shall
provide the producer with the form of such notice and use a reasonable means to
verify that such notice is given. The disclosure notice form shall be developed by
the insurer.

(c) Upon request by an applicant or policyholder, an insurer or producer shall
provide an explanation of the significant characteristics of the credit information
that impact the policyholder's insurance score. This information may be included in
the disclosure notice form.

(2) If the use of credit information results in an adverse action to a consumer,
the insurer shall comply with the notice requirements of the federal Fair Credit
Reporting Act, 15 U.S.C. sec. 1681 et seq. Such notice shall include, but is not
limited to:

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

(b) Notice of the consumer's right to receive a free credit report from the
consumer reporting agency for a period of sixty days if such report resulted in an
adverse action; and

(c) Notice of the consumer's right to lodge a dispute with the consumer
reporting agency and have any erroneous information corrected in accordance with
the federal Fair Credit Reporting Act, 15 U.S.C. sec. 1681 et seq.

(3) For the purposes of this section, adverse action means a denial,
cancellation, or nonrenewal of, an increase in any charge for, a placement into a
higher tier, or a reduction or unfavorable change in the terms of coverage or
amount of insurance in connection with underwriting of existing insurance or an
application for insurance.

Legislative History

Source: L. 2003: Entire section added, p. 839, � 1, effective July 1, 2004.