31A-22-1307 - Use of consumer reports by residential dwelling liability insurers.
31A-22-1307. Use of consumer reports by residential dwelling liability insurers.
(1) An insurer who uses consumer reports in connection with the underwriting ofresidential dwelling liability insurance shall establish and adhere to written procedures that:
(a) identify the circumstances under which the insurer may request and the manner inwhich it will use consumer reports in its underwriting decisions;
(b) provide prior notice of the possible or intended use of a consumer report to anapplicant for a residential liability insurance policy; and
(c) ensure compliance with the Consumer Credit Reporting Act, 15 U.S.C. Sec. 1681 etseq., including the duties that arise from taking adverse action based on information contained ina consumer report.
(2) An insurer that requests or uses a consumer report in connection with an applicationfor a residential dwelling liability insurance policy shall maintain evidence of its compliance withthe written procedures established by the insurer under Subsection (1).
(3) An insurer shall submit to the commissioner, upon request, evidence of compliancemaintained in accordance with Subsection (2).
(4) As used in this section, the terms "consumer report" and "adverse action" are definedin 15 U.S.C. Sec. 1681a.
Enacted by Chapter 105, 1997 General Session