Current through Register Vol. 46, No. 12, March 20, 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).
