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This entry was published on 2014-09-22
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Adverse action notification
Insurance (ISC) CHAPTER 28, ARTICLE 28
§ 2805. Adverse action notification. If an insurer takes an adverse
action based upon credit information, the insurer shall:

(a) provide notification to the consumer that an adverse action has
been taken, in accordance with the requirements of the federal Fair
Credit Reporting Act, 15 USC 1681m(a); and

(b) provide notification to the consumer explaining the reason for the
adverse action. The reasons must be provided in sufficiently clear and
specific language so that a person can identify the basis for the
insurer's decision to take an adverse action. Such notification shall
include a description of up to four factors that were the primary
influences of the adverse action. The use of generalized terms such as
"poor credit history", "poor credit rating", or "poor insurance score"
does not meet the explanation requirements of this subsection.
Standardized credit explanations provided by consumer reporting agencies
or other third party vendors are deemed to comply with this section.