IBC.Code Flashcards

1
Q

Identify 4 IBC’s guidelines on the use of credit information.

A
  1. Comply with all local laws & regulations
  2. Credit into should be up-to-date & accurate
  3. Require informed/deemed consent
  4. Take reasonable steps to address privacy concerns
  5. Cannot: quote / deny / cancel based solely on credit
  6. Ensure that credit score is only used once in rating procedure
  7. Must be handled in accordance with Financial Consumer Agency of Canada
  8. Must inform insured of adverse action due to credit score
  9. Can't refuse to quote if insured doesn't give credit score consent
  10. Insured can appeal negative action due to credit score IF caused by an extraordinary life event
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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)
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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)
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4
Q

Identify 4 considerations when using aggregate credit scores by postal code for pricing.

A
  1. Insurer needs way to handle low-credibility postal codes
  2. Comply with all local laws & regulations
  3. Credit into should be up-to-date & accurate
  4. Require informed/deemed consent
  5. Take reasonable steps to address privacy concerns
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