§ 31A-22-1307. Use of consumer reports by residential dwelling liability insurers.

(1) An insurer who uses consumer reports in connection with the underwriting of residential dwelling liability insurance shall establish and adhere to written procedures that:

(a) identify the circumstances under which the insurer may request and the manner in which it will use consumer reports in its underwriting decisions;

(b) provide prior notice of the possible or intended use of a consumer report to an applicant for a residential liability insurance policy; and

(c) ensure compliance with the Consumer Credit Reporting Act, 15 U.S.C. Sec. 1681 et seq., including the duties that arise from taking adverse action based on information contained in a consumer report.

(2) An insurer that requests or uses a consumer report in connection with an application for a residential dwelling liability insurance policy shall maintain evidence of its compliance with the written procedures established by the insurer under Subsection (1).

(3) An insurer shall submit to the commissioner, upon request, evidence of compliance maintained in accordance with Subsection (2).

(4) As used in this section, the terms "consumer report" and "adverse action" are defined in 15 U.S.C. Sec. 1681a.

Enacted by Chapter 105, 1997 General Session