The Fair Credit Reporting Act (FCRA) regulates the collection and use of consumer-report information in insurance underwriting. When an insurer obtains an investigative consumer report, the applicant must receive appropriate notice concerning the investigation and has rights concerning disclosure of the nature and scope of that investigation. When information from a consumer report contributes to an adverse underwriting decision, such as denial of coverage, an increased premium, or less favorable policy terms, the insurer must provide the applicant with an adverse-action notice.

The insurer is not, however, required to personally discuss each inconsistency appearing in the applicant ' s credit history. The consumer instead has statutory rights to obtain information from the consumer reporting agency and dispute information believed to be inaccurate or incomplete. FTC guidance confirms that adverse-action requirements include notification and information concerning the reporting agency and the consumer ' s dispute rights; they do not impose a general requirement that the insurer conduct a discussion with the applicant about individual credit discrepancies.

Therefore, D is the exception.

Study Guide Reference: Federal Laws and Regulations — Fair Credit Reporting Act; investigative consumer reports; adverse-action notices; applicant disclosure rights.