Which law requires insurers to notify applicants of potential investigative consumer reports?

The Fair Credit Reporting Act (FCRA) requires insurers to notify applicants when there is a possibility of obtaining an investigative consumer report about them. This law is designed to promote accuracy and fairness in consumer reporting and ensures that consumers are informed when a report that assesses their character, general reputation, personal characteristics, or lifestyle is being utilized to evaluate them for insurance underwriting.

Insurers must provide a notice to applicants when they intend to gather this information, which allows individuals to be aware of the potential influence of their personal history on insurance decisions. Furthermore, it grants consumers the right to know what is contained in their reports and to dispute inaccuracies.

The other options, while they may address various consumer protection laws, do not specifically focus on the requirement for insurers to notify applicants regarding investigative consumer reports. The Consumer Protection Act, Insurance Information and Privacy Protection Act, and Consumer Credit Protection Act each tackle different aspects of consumer rights and privacy but do not encompass the specific notification requirement that the Fair Credit Reporting Act does.