An insurer who uses consumer reports in connection with the underwriting of residential dwelling liability insurance shall establish and adhere to written procedures that:
Terms Used In Utah Code 31A-22-1307
Application: means a document:
(a)
(i)
completed by an applicant to provide information about the risk to be insured; and
(ii)
that contains information that is used by the insurer to evaluate risk and decide whether to:
(A)
insure the risk under:
(I)
the coverage as originally offered; or
(II)
a modification of the coverage as originally offered; or
(B)
decline to insure the risk; or
(b)
used by the insurer to gather information from the applicant before issuance of an annuity contract. See Utah Code 31A-1-301
Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
Insurance: includes :
(i)
a risk distributing arrangement providing for compensation or replacement for damages or loss through the provision of a service or a benefit in kind;
(ii)
a contract of guaranty or suretyship entered into by the guarantor or surety as a business and not as merely incidental to a business transaction; and
(iii)
a plan in which the risk does not rest upon the person who makes an arrangement, but with a class of persons who have agreed to share the risk. See Utah Code 31A-1-301
Liability insurance: includes :
(i)
vehicle liability insurance;
(ii)
residential dwelling liability insurance; and
(iii)
making inspection of, and issuing a certificate of inspection upon, an elevator, boiler, machinery, or apparatus of any kind when done in connection with insurance on the elevator, boiler, machinery, or apparatus. See Utah Code 31A-1-301
Residential dwelling liability insurance: means insurance against liability resulting from or incident to the ownership, maintenance, or use of a residential dwelling that is a detached single family residence or multifamily residence up to four units. See Utah Code 31A-1-301
(a)
identify the circumstances under which the insurer may request and the manner in which it will use consumer reports in its underwriting decisions;
(b)
provide prior notice of the possible or intended use of a consumer report to an applicant for a residential liability insurancepolicy; and
(c)
ensure compliance with the Consumer Credit Reporting Act, 15 U.S.C. § 1681 et seq., including the duties that arise from taking adverse action based on information contained in a consumer report.
(2)
An insurer that requests or uses a consumer report in connection with an application for a residential dwelling liability insurance policy shall maintain evidence of its compliance with the written procedures established by the insurer under Subsection (1).
(3)
An insurer shall submit to the commissioner, upon request, evidence of compliance maintained in accordance with Subsection (2).
(4)
As used in this section, the terms “consumer report” and “adverse action” are defined in 15 U.S.C. § 1681a.
