Indiana Code 27-2-21-18. Disclosure of use of credit information
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Sec. 18. (a) If an insurer uses credit information in underwriting or rating a consumer, the insurer or the insurer’s agent shall disclose, either on the insurance application or at the time the insurance application is taken, that the insurer may obtain credit information in connection with the application. The disclosure must be:
(2) provided to the consumer in the same medium as the application for insurance.
(1) written; or
Terms Used In Indiana Code 27-2-21-18
- consumer: means an:
Indiana Code 27-2-21-5
- credit information: means credit related information:
Indiana Code 27-2-21-7
- credit report: means a written, an oral, or another communication of information by a consumer reporting agency concerning a consumer's creditworthiness, credit standing, or credit capacity that is used or expected to be used or collected as a factor to determine personal insurance policy premiums, eligibility for coverage, or tier placement. See Indiana Code 27-2-21-8
- Credit report: A detailed report of an individual's credit history prepared by a credit bureau and used by a lender in determining a loan applicant's creditworthiness. Source: OCC
- insurance score: means a number or rating that is derived from an algorithm, computer application, model, or other process that is based on credit information for the purpose of predicting the future insurance loss exposure of an individual consumer. See Indiana Code 27-2-21-11
- insured: means an individual entitled to coverage under a personal insurance policy. See Indiana Code 27-2-21-12
- insurer: refers to an insurer (as defined in IC 27-1-2-3) that issues a personal insurance policy. See Indiana Code 27-2-21-13
The insurer is not required to provide the disclosure statement required under this section to an insured on a renewal policy if the insured has previously been provided a disclosure statement.
(b) Use of the following sample disclosure statement constitutes compliance with this section: “In connection with this application for insurance, we may review your credit report or obtain or use a credit based insurance score based on the information contained in that credit report. We may use a third party in connection with the development of your insurance score.”.
As added by P.L.201-2003, SEC.1.