Nebraska Statutes 44-7708. Adverse action; notice requirements
If an insurer takes an adverse action based upon credit information, the insurer must meet the notice requirements of both subdivisions (1) and (2) of this section. Such insurer shall:
Terms Used In Nebraska Statutes 44-7708
- Action: shall include any proceeding in any court of this state. See Nebraska Statutes 49-801
- 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
- Insurer: shall include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Insurer shall: include all companies, exchanges, societies, or associations whether organized on the stock, mutual, assessment, or fraternal plan of insurance and reciprocal insurance exchanges. See Nebraska Statutes 44-103
- Person: shall include bodies politic and corporate, societies, communities, the public generally, individuals, partnerships, limited liability companies, joint-stock companies, and associations. See Nebraska Statutes 49-801
(1) Provide notification to the consumer that an adverse action has been taken, in accordance with the requirements of the federal Fair Credit Reporting Act, as such act existed on January 1, 2003, 15 U.S.C. § 1681m(a); and
(2) Provide notification to the consumer explaining the reason for the adverse action. The reasons must be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer’s decision to take an adverse action. Such notification shall include a description of up to four factors that were the primary influences of the adverse action. The use of generalized terms such as poor credit history, poor credit rating, or poor insurance score does not meet the explanation requirements of this subdivision. Standardized credit explanations provided by consumer reporting agencies or other third-party vendors are deemed to comply with this section.