IBC.Code Flashcards
1
Q
Identify 4 IBC’s guidelines on the use of credit information.
A
- Comply with all local laws & regulations
- Credit into should be up-to-date & accurate
- Require informed/deemed consent
- Take reasonable steps to address privacy concerns
- Cannot: quote / deny / cancel based solely on credit
- Ensure that credit score is only used once in rating procedure
- Must be handled in accordance with Financial Consumer Agency of Canada
- Must inform insured of adverse action due to credit score
- Can’t refuse to quote if insured doesn’t give credit score consent
- Insured can appeal negative action due to credit score IF caused by an extraordinary life event
2
Q
Discuss requirements for a credit-score consent request for personal insurance
A
- Authorization from the customer to access the credit information
- What info will be collected
- How info will be used
- State consent period (dates)
- Notify customer that they have a right to withdraw consent (but note consequences of withdrawal such as higher than optimal rate)
3
Q
Propose a process to satisfy both customer and IBC’s Code of Conduct regarding use of credit score.
A
- Submit written statement explaining the event (impact of identify theft on credit score)
- Insurer may accept explanation and offer quote with adjusted credit score
- Informed customer consent is still required
- If customer doesn’t consent, insurer cannot reject (must provide quote without using credit score)
4
Q
Identify 4 considerations when using aggregate credit scores by postal code for pricing.
A
- Insurer needs way to handle low-credibility postal codes
- Comply with all local laws & regulations
- Credit into should be up-to-date & accurate
- Require informed/deemed consent
- Take reasonable steps to address privacy concerns