New York Codes, Rules and Regulations
Title 11 - INSURANCE
Chapter IX - Unfair Trade Practices
Part 221 - Limitations Upon And Requirements For The Use Of Credit Information For Personal Lines Insurance
Section 221.6 - Adverse action notification
Current through Register Vol. 46, No. 12, March 20, 2024
(a) Section 2805(a) of the Insurance Law provides that an insurer that takes an adverse action based upon credit information shall 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 1681 m(a).
(b) The notification shall be provided within 30 days of taking the action and shall explain the reasons the insurer took the adverse action in clear and specific language and shall include a description of up to four credit related factors that were the primary influences of the adverse action. If one of the factors identified in the notification is a credit score, the notification shall include an explanation of the score that may include a standardized credit explanation provided by a consumer reporting agency or other third party vendor.
(c) Where an insurance producer or other entity has been designated by an insurer to issue the notification on its behalf, the insurer shall provide the insurance producer or other entity with the form of the adverse action notification. In addition, the insurer shall use a reasonable means to verify that the notice has been provided to the consumer by the insurance producer or other entity.
(d) 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).
