When must a life insurance applicant be informed of their rights under the Fair Credit Reporting Act?

The correct choice indicates that an applicant must be informed of their rights under the Fair Credit Reporting Act when the policy is delivered. This requirement is rooted in the intent of the Act, which is designed to promote transparency and protect the rights of consumers regarding the information that is collected about them from credit reporting agencies.

When the policy is delivered, the insurance company must provide the applicant with information about their rights to ensure they are fully aware of how any information related to their creditworthiness may impact their insurance coverage. This includes the right to know what information was collected, the right to dispute inaccuracies, and the right to access their credit information. By informing applicants at this stage, insurers comply with legal standards while also empowering consumers to understand their rights and take any necessary actions regarding their credit information.

Other options suggest informing the applicant at earlier stages in the process, such as at the time of application or when the first premium is paid, but the Fair Credit Reporting Act specifically stipulates that such information must be disclosed at the time the policy is delivered to promote consumer rights awareness post-application.