40-5107. Adverse action; notice to consumer, contents. - Kansas Statutes

40-5107

Chapter 40.--INSURANCE Article 51.--INSURANCE SCORE ACT

      40-5107.   Adverse action; notice to consumer,contents.(a) If an insurer takes an adverse action based upon creditinformation, the insurer shall provide written notification to the consumer anotice that:

      (1)   An adverse action has been taken, in accordance with the requirements ofthe federal fair credit reporting act as set forth in, 15 USC 1681m(a); and

      (2)   explains the reason for such adverse action.

      (b)   Each reason must be provided in sufficiently clear and specific languageso that a person can identify the basis for the insurer's decision to take suchadverse action. An insurer shall provide a procedure whereby a consumer mayreview an adverse action based on credit information. Such procedure shall beconsistent with the provisions of K.S.A. 40-2,112 and amendments thereto. Theinsurer and the insurer's agent shall be immune from any action arising frominformation provided to the insured through such process. The insurer shall notbe found in violation of rate filings by adjusting an insured's rate in such amanner.

      (c)   The use of generalized terms such as "poor credit history," "poor creditrating," or "poor insurance score" shall be deemed not to comply withrequirements of this section.

      History:   L. 2003, ch. 88, § 8; July 1.