N.H. Admin. Code § Ins 3309.02

Current through Register No. 45, November 7, 2024

Section Ins 3309.02 - Adverse Action Notification

(a) Any notice required pursuant to this section shall include the following information:

(1) Notification to the consumer that an adverse action has been taken in accordance with the requirement of the federal Fair Credit Reporting Act, 15 U.S.C. 1681m(a);

(2) The name, address, and telephone number of the consumer reporting agency, including a toll-free number established by the agency if the agency compiles and maintains files on consumers on a nationwide basis, that furnished the report to the insurer;

(3) A statement that the insurer, and not the credit reporting agency, used an insurance score or information from a consumer report in the rating or underwriting of the private passenger automobile or homeowners insurance policy, and the credit reporting agency is unable to provide the consumer with any explanations or reasons as to the actions taken by the insurer;

(4) A telephone contact number the consumer may call to discuss aspects of the adverse action notice with a representative of the insurer who can:

a.Review the notice;

b.Be available to address questions related to:

1.The insurer's use of credit; and

2.The insurer's adverse action notice and factors reflected therein; and

(5) Provide a statement advising of the consumer's rights to obtain a free copy of their credit report from the consumer reporting agency and the right to file a dispute with the consumer reporting agency over the accuracy or completeness of any information in the credit report furnished by the agency.

(b) In addition to the information set forth in Ins 3309.02(a) above, any notice required pursuant to this section shall also include the following information:

(1) A statement advising of the consumer's rights to obtain a free copy of their credit report from the consumer reporting agency and the right to file a dispute with the consumer reporting agency over the accuracy or completeness of any information in the credit report furnished by the agency; and

(2) An explanation of the reasons for the adverse action that shall include:

a.Up to 4 credit factors that were the primary factors influencing the adverse action; and

b.An explanation of each of the factors in (b)(2)a. above that meets the standards provided under paragraph (c).

(c) Any explanation required in Ins 3309.02 shall:

(1) Be provided in clear and simple language so that a person can identify the basis for the insurer's decision to take an adverse action;

(2) Not use general terms or terminologies that do not provide specific information relevant to the consumer. Examples of such general terminology include, but are not limited to:

a.Poor credit history;

b.Poor credit rating;

c.Poor insurance score; and

d.Other descriptors such as "unfavorable" or "unsatisfactory" if they do not provide clear standards for the consumer to evaluate the actions of the insurer; and

(3) Rely, at the option of the insurer, upon standardized credit explanations provided by consumer reporting agencies or other third party vendors as long as such explanations comply with all provisions enumerated in this chapter.

N.H. Admin. Code § Ins 3309.02

#9634, eff 7-1-10

Amended by Volume XXXVIII Number 32, Filed August 9, 2018, Proposed by #12599, Effective 8/3/2018, Expires 8/3/2028.