Initial disclosure. If an insurer uses credit information in underwriting or rating, Illinois law requires the insurer or its agent to tell you at the time they take your application, that the company may obtain your credit information. The disclosure must be in the same medium as the application. For example, if the application is taken in writing, the disclosure must be in writing. If your application is taken verbally or on the phone, the disclosure must be provided in the same manner. Ask the agent or company if they will check the credit information of other people insured on your policy, such as family members, and how their credit information will affect your eligibility, your coverages, or your premiums.
"Adverse action" notification. If your credit information causes an insurer to take a negative or "adverse action" against you, both the FCRA and Illinois law require the insurer to tell you about the "adverse action." Examples of an "adverse action" include denying, canceling, or nonrenewing your insurance policy, giving you a limited coverage form, not giving you the best rate, not giving you a discount, giving you a surcharge or higher rate, or not placing you in the company's best tier or program.
The company may tell you about the adverse action either verbally or in writing, and the company must give you up to four (4) of the top factors about your credit information that caused the adverse action. The adverse action notice must also list the name of the national credit bureau that supplied the information so that you can get a free copy of your credit report if you are eligible.
Ask the agent or company. If your credit information did not cause an adverse action, and if you are not a new customer to your insurer, but you still wish to know if your company is using your credit information, or how your credit information affects your insurance coverages or premiums, ask your agent or company directly.
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Initial disclosure. If an insurer uses credit information in underwriting or rating, Illinois law requires the insurer or its agent to tell you at the time they take your application, that the company may obtain your credit information. The disclosure must be in the same medium as the application. For example, if the application is taken in writing, the disclosure must be in writing. If your application is taken verbally or on the phone, the disclosure must be provided in the same manner. Ask the agent or company if they will check the credit information of other people insured on your policy, such as family members, and how their credit information will affect your eligibility, your coverages, or your premiums.
"Adverse action" notification. If your credit information causes an insurer to take a negative or "adverse action" against you, both the FCRA and Illinois law require the insurer to tell you about the "adverse action." Examples of an "adverse action" include denying, canceling, or nonrenewing your insurance policy, giving you a limited coverage form, not giving you the best rate, not giving you a discount, giving you a surcharge or higher rate, or not placing you in the company's best tier or program.
The company may tell you about the adverse action either verbally or in writing, and the company must give you up to four (4) of the top factors about your credit information that caused the adverse action. The adverse action notice must also list the name of the national credit bureau that supplied the information so that you can get a free copy of your credit report if you are eligible.
Ask the agent or company. If your credit information did not cause an adverse action, and if you are not a new customer to your insurer, but you still wish to know if your company is using your credit information, or how your credit information affects your insurance coverages or premiums, ask your agent or company directly.