Current through Register Vol. 46, No. 39, September 25, 2024
(a) An
insurer that uses credit information in underwriting or rating a consumer shall
disclose to the consumer that it may obtain credit information on the consumer.
The contents of the disclosure shall be in accordance with the statutory
requirements contained in section
2804
(b) of the Insurance Law.
(b) The insurer shall provide the disclosure
at the time of application and on renewal to each consumer.
(c) The method for providing the disclosure
shall be as follows:
(1) Written application
for new business.
(i) The disclosure shall be
made in writing, in at least 12-point type, upon receipt of the application for
insurance.
(ii) The disclosure
notice shall be provided to the consumer in a separate written document, on
company letterhead or that identifies the insurer, and shall include the
address and a toll-free telephone number of the insurer.
(2) Telephone application for new business.
(i) For applications taken over the
telephone, the disclosure as enumerated in section
2804
(d) of the Insurance Law may be provided
either orally at the time the application is taken or in writing, in at least
12-point type, upon receipt of the application. If in writing, the disclosure
notice shall comply with the written application requirements in paragraph (1)
of this subdivision.
(ii) If the
policy is issued, the disclosure notice shall then also be provided to the
consumer, as specified in section
2804
(b) of the Insurance Law, in a separate
written document, in at least 12-point type, upon policy issuance.
(3) Other medium for new business.
(i) For new business that is not applied for
on the telephone or in writing, the disclosure shall be provided either in the
same medium as the application for insurance or in writing, in at least
12-point type. The disclosure shall be provided upon the insurer's receipt of
the application.
(4)
Renewal business.
(i) On all renewals, a
written disclosure notice, in at least 12-point type, shall be provided at
least 10 days prior to the effective date of the renewal policy.
(ii) The disclosure notice shall be provided
to the consumer in a separate written document, on company letterhead or that
identifies the insurer, and shall include the address and a toll-free telephone
number of the insurer.
(d) Where an insurance producer or other
entity has been designated by an insurer to issue the disclosure on its behalf,
the insurer shall provide the insurance producer or other entity with the form
of the disclosure notice. In addition, the insurer shall use a reasonable means
to verify that the disclosure has been provided to the consumer by the
insurance producer or other entity.
(e) Documentation that the required
notification has been provided to the consumer shall be maintained by the
insurer in accordance with section
243.2 of this Title (Regulation
No. 152).
