Sources of Insurability Information

Question 1

Underwriting Process Sources

Answer 1

• Application Form
• Motor Vehicle Records
• Interviews with employers, friends and neighbors
• Inspection of property
• Inspection of insurance history

Question 2

Fair Credit Reporting Act (FCRA)

Answer 2

Administered by the Federal Trade Commission
-Protects consumers from any distribution of false or obsolete personal financial information

**Underwriter may sometimes ask for additional information which usually comes from 2 reports: Consumer Reports & Investigative Consumer Reports

Question 3

Gramm-Leach-Bliley Act

Answer 3

• An insurance company cannot disclose nonpublic information to a nonaffiliated third party expect for certain reasons
• Requries 2 disclosures: When customer relationship is established and prior to disclosing protected info
• Customers are required to receive annual privacy disclosures, have the right to opt out or choose not to have private info shared with other parties

Question 4

Terrorism Risk Insurance Act (TRIA)

Answer 4

• Temporary federal program intended to share a risk of loss from terrorist attacks with insurers
• Insurer must meet retentions and deductibles before government reimbursement