An insurer reviews a consumer's credit report during underwriting and decides to charge a higher premium than its best rate. Under the Fair Credit Reporting Act (FCRA), what must the insurer do?

Why this is the answer

The Fair Credit Reporting Act (FCRA) governs how consumer reporting agencies (CRAs) may collect and share information and how businesses — including insurers — may use it. When an insurer takes an 'adverse action' based on a consumer report — defined to include charging a higher-than-best rate, limiting coverage, or denying coverage — the insurer must provide an adverse action notice. This notice must: (1) identify that adverse action was taken; (2) name the consumer reporting agency that supplied the report; (3) advise the consumer of the right to obtain a free copy of the report from the CRA within 60 days; and (4) advise of the right to dispute inaccurate information. The insurer need not delete the report or re-notify annually. See FL Outline §III — FCRA.