(1) The purposes and scope of this rule are:
    (a) To assure that insurance applicants are given notice when credit reports will be requested and reviewed in underwriting an insurance application; and,
    (b) To prevent the unfairly discriminatory use of credit reports in underwriting insurance applications.
    (c) This rule applies to the underwriting of applications for personal lines automobile and homeowners insurance only.
    (2) For purposes of this rule:
    (a) The term “”credit report”” means any written, oral, or other communication of any information by a consumer reporting agency (as defined in the Federal Fair Credit Reporting Act) bearing on a consumer’s credit worthiness, credit standing, or credit capacity, which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer’s eligibility for personal lines automobile or homeowner insurance to be used primarily for person, family, or household purposes.
    (b) The term “”adverse underwriting decision”” means a decision to reject an insurance application or to issue the policy with restrictions that would not apply but for the consideration of the credit report.
    (3) Any insurer that requests or utilizes credit reports in the review of personal lines automobile or homeowner insurance applications shall maintain and adhere to written procedures established by the insurer which shall specify:
    (a) The circumstances under which credit reports will or may be requested and the reports will or may be used in underwriting decisions;
    (b) That the insurer shall notify the applicant prior to such request that a credit report will or may be requested in connection with an insurance application.
    (c) That this notification shall be written, or in the same medium as the application. If the insurer is using the application to provide notice, then it shall provide a space for the initials of the person completing the application, denoting that the notice was provided. Once notice is given to an applicant, it need not be provided again as to subsequent applications by the same applicant.
    (d) That the decision to request a credit report will not be made based upon race, color, creed, marital status, sex, or national origin of the applicant; and,
    (e) That any applicant that is affected by an adverse underwriting decision as defined in this rule shall be advised of the means by which the applicant can obtain a copy of the credit report.
    (4)(a) Any insurer that requests or utilizes credit reports in consideration of an application for personal lines automobile or homeowners insurance shall maintain evidence of its compliance with the written procedures prescribed in subsection (3).
    (b) The evidence need not be in any particular form, so long as it is sufficient to reasonably demonstrate compliance.
    (c) The evidence shall be made available for review by the Office at the offices of the insurer for examination by the Office.
    (d) When an insurer within the scope of this rule denies an application based on information in a credit report, the reasons accompanying the notice of denial as specified by Florida Statutes § 627.4091, must indicate the means by which the applicant may obtain a copy of the credit report, and by which the applicant may identify the specific items in the credit report which resulted in the denial. Evidence of the notice of denial shall be retained by the insurer, and a record of the contents of the credit report shall be maintained by the insurer or pursuant to the insurer’s agreement with the consumer reporting agency for a sufficient time to be available during the next market conduct examination conducted pursuant to Florida Statutes § 624.3161
Rulemaking Authority 624.308(1), 626.9611, 626.9741 FS. Law Implemented 624.307(1), 626.9541(1)(a)4.,(x), 626.9641(1)(a), 627.318, 627.4091 FS. History-New 10-10-96, Formerly 4-125.004.