Florida Administrative Code
69 - DEPARTMENT OF FINANCIAL SERVICES
69O - OIR - Insurance Regulation
Chapter 69O-125 - UNFAIR DISCRIMINATION
Section 69O-125.004 - Credit Report Use and Disclosure in Consideration of Insurance Applications
Universal Citation: FL Admin Code R 69O-125.004
Current through Reg. 50, No. 187; September 24, 2024
(1) The purposes and scope of this rule are:
(a) To assure that
insurance applicants are given notice when credit reports will be requested and
reviewed in underwriting an insurance application; and,
(b) To prevent the unfairly discriminatory
use of credit reports in underwriting insurance applications.
(c) This rule applies to the underwriting of
applications for personal lines automobile and homeowners insurance
only.
(2) For purposes of this rule:
(a) The term "credit report" means
any written, oral, or other communication of any information by a consumer
reporting agency (as defined in the Federal Fair Credit Reporting Act) bearing
on a consumer's credit worthiness, credit standing, or credit capacity, which
is used or expected to be used or collected in whole or in part for the purpose
of serving as a factor in establishing the consumer's eligibility for personal
lines automobile or homeowner insurance to be used primarily for person,
family, or household purposes.
(b)
The term "adverse underwriting decision" means a decision to reject an
insurance application or to issue the policy with restrictions that would not
apply but for the consideration of the credit report.
(3) Any insurer that requests or utilizes credit reports in the review of personal lines automobile or homeowner insurance applications shall maintain and adhere to written procedures established by the insurer which shall specify:
(a) The circumstances under which credit
reports will or may be requested and the reports will or may be used in
underwriting decisions;
(b) That
the insurer shall notify the applicant prior to such request that a credit
report will or may be requested in connection with an insurance
application.
(c) That this
notification shall be written, or in the same medium as the application. If the
insurer is using the application to provide notice, then it shall provide a
space for the initials of the person completing the application, denoting that
the notice was provided. Once notice is given to an applicant, it need not be
provided again as to subsequent applications by the same applicant.
(d) That the decision to request a credit
report will not be made based upon race, color, creed, marital status, sex, or
national origin of the applicant; and,
(e) That any applicant that is affected by an
adverse underwriting decision as defined in this rule shall be advised of the
means by which the applicant can obtain a copy of the credit
report.
(4)
(a) Any insurer that requests or utilizes
credit reports in consideration of an application for personal lines automobile
or homeowners insurance shall maintain evidence of its compliance with the
written procedures prescribed in subsection (3).
(b) The evidence need not be in any
particular form, so long as it is sufficient to reasonably demonstrate
compliance.
(c) The evidence shall
be made available for review by the Office at the offices of the insurer for
examination by the Office.
(d) When
an insurer within the scope of this rule denies an application based on
information in a credit report, the reasons accompanying the notice of denial
as specified by section
627.4091, F.S., must indicate
the means by which the applicant may obtain a copy of the credit report, and by
which the applicant may identify the specific items in the credit report which
resulted in the denial. Evidence of the notice of denial shall be retained by
the insurer, and a record of the contents of the credit report shall be
maintained by the insurer or pursuant to the insurer's agreement with the
consumer reporting agency for a sufficient time to be available during the next
market conduct examination conducted pursuant to section
624.3161,
F.S.
Rulemaking Authority 624.308(1), 626.9611, 626.9741 FS. Law Implemented 624.307(1), 626.9541(1)(a)4.,(x), 626.9641(1)(a), 627.318, 627.4091 FS.
New 10-10-96, Formerly 4-125.004.
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