Which act requires insurers to disclose when an applicant's consumer or credit history is investigated?

The Fair Credit Reporting Act (FCRA), enacted in 1970, mandates that insurers and other entities must inform applicants when their consumer or credit histories are accessed for purposes such as underwriting insurance. This act is designed to promote the fairness, accuracy, and privacy of consumer information contained in the files of consumer reporting agencies.

Under the FCRA, if an insurer takes an adverse action based on information received from a credit report, the applicant must receive a notice that includes the name of the consumer reporting agency, as well as the rights of the consumer regarding their credit information. By requiring this disclosure, the FCRA empowers consumers by making them aware of the factors affecting their insurability and encourages transparency in the decision-making process of insurers.

The other options provided relate to different aspects of privacy and financial disclosures. The Insurance Information and Privacy Protection Act focuses on how insurance companies handle customer information, while the Gramm-Leach-Bliley Act deals with the protection of consumer financial information in a broader financial context. The Truth in Lending Act, on the other hand, is centered around lending practices and requires clear disclosures for borrowers regarding the costs of credit. Each of these acts plays a role in consumer protection but does not specifically require notification related to the investigation of