IBC - Code of Conduct Flashcards

1
Q

Describe principles related to customer consent when using credit scoring. (1 - 5)

A

LAWS: comply with all local laws & regulations
ACCURACY: credit info should be up-to-date & accurate
CONSENT: require informed/deemed consent
PRIVACY: take reasonable steps to address privacy concerns
CANNOT: quote/deny/cancel based solely on credit

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2
Q

Describe principles related to customer consent when using credit scoring. (6 - 10)

A

DOUBLE-COUNTING: forbidden, ensure that credit score only used once in rating procedure
COMPLAINTS: must be handled in accordance with Financial Consumer Agency of Canada
ADVERSE ACTION: insurer must inform insured of adverse action due to credit score
NO REFUSAL: insurer can’t refuse to quote if insured doesn’t give consent to use credit score
APPEAL: insured can appeal negative action due to credit score IF caused by an extraordinary life event

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3
Q

Identify considerations when using aggregation credit scores by postal code for pricing.

A

POSTAL CODES: insurer needs a way to handle low-credibility postal codes
LAWS: comply with all local laws & regulations
ACCURACY: credit info should be up-to-date and accurate
CONSENT: required informed/deemed consent
PRIVACY: take reasonable steps to address privacy concerns

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