New Notice Required for Insurers Using Credit Reports
Effective January 1, 2022, insurers using credit reports or credit scoring for underwriting or rating purposes must provide a new notice to consumers. The notice must state:
The Department of Financial Services offers free financial literacy programs to assist you with insurance-related questions, including how credit works and how credit scores are calculated. To learn more, visit www.MyFloridaCFO.com.
The Florida Legislature adopted this new requirement in SB 1598 during the 2021 legislative session. The requirement has been added to the existing Section 626.9741, Florida Statutes. The statute already required insures to notify insureds or applicants if credit reports or credit scores would be obtained in the underwriting or rating process. The statute also continued to require insurers making adverse decisions based on credit to provide consumers with free copies of their reports. Further, insurers must inform consumers of the reasons for their adverse decisions.