Insurance Regulation: Consumer Protection

If a consumer makes a written request for additional disclosures, the disclosures shall be provided to the consumer not later than ________ days.

five

It is a violation of federal law for someone engaged in the business of insurance—whose activities affect interstate commerce and knowingly with the intent to deceive—to make any false material statement or report. Violations of this law are punishable by imprisonment, fines, or both. Federal law prevents individuals from selling insurance if they were convicted of a crime involving dishonesty. These individuals are allowed to sell insurance only if they have obtained written consent from the Utah Insurance Department. This written consent is known as a ____________.

1033 waiver.

The ___________________ is a federal law that regulates how information about consumers may be gathered, and helps ensure the validity of reports. It gives consumers the right to know when a report is being made about their credit history and to request more information.

Fair Credit Reporting Act

The _______________ is a federal law that deals with privacy. It controls how private information about individuals can be handled by insurance companies and other financial institutions. The law states:

Gramm-Leach-Bliley Act *an insurer must clearly state to a consumer that private information may be disclosed to third parties; *the consumer must be given the opportunity to prevent private information from being disclosed to third parties; and *the consumer must be given an annual privacy disclosure that informs the consumer about the consumer's privacy rights under the law.

An __________________(ICR) may not be ordered unless the consumer being investigated:

Investigative consumer report *is notified in writing, not later than three days after the date on which the report was first requested, and *is informed that the consumer has a right to request additional disclosures about the investigative consumer report.

Fair Credit Reporting Act: There are two types of reports:

consumer report investigative consumer report

investigative consumer report

is a consumer report in which information on a consumer's character, general reputation, personal characteristics, or mode of living is obtained through personal interviews with neighbors, friends, or associates of the consumer.

consumer report

is any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living; and