Kansas Statutes 40-5107. Adverse action; notice to consumer, contents
(a) If an insurer takes an adverse action based upon credit information, the insurer shall provide written notification to the consumer a notice that:
(1) An adverse action has been taken, in accordance with the requirements of the federal fair credit reporting act as set forth in, 15 U.S.C. § 1681m(a); and
Terms Used In Kansas Statutes 40-5107
- Adverse action: means any of the following in connection with the underwriting of personal insurance:
(1) A denial or cancellation of coverage; or
(2) a reduction or other adverse or unfavorable change in the terms of coverage of any insurance regardless of whether such insurance is in existence or has been applied for. See Kansas Statutes 40-5103
- Consumer: means an insured whose credit information is used or whose insurance score is calculated in the underwriting or rating of a personal insurance policy. See Kansas Statutes 40-5103
- Credit information: means any credit related information derived from a credit report, found on a credit report itself, or provided on an application for personal insurance. See Kansas Statutes 40-5103
- Fair Credit Reporting Act: A federal law, established in 1971 and revised in 1997, that gives consumers the right to see their credit records and correct any mistakes. Source: OCC
(2) explains the reason for such adverse action.
(b) Each reason must be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer’s decision to take such adverse action. An insurer shall provide a procedure whereby a consumer may review an adverse action based on credit information. Such procedure shall be consistent with the provisions of Kan. Stat. Ann. § 40-2,112, and amendments thereto. The insurer and the insurer’s agent shall be immune from any action arising from information provided to the insured through such process. The insurer shall not be found in violation of rate filings by adjusting an insured’s rate in such a manner.
(c) The use of generalized terms such as “poor credit history,” “poor credit rating,” or “poor insurance score” shall be deemed not to comply with requirements of this section.