Insurance Background Checks

Insurance background check reports are ‘consumer reports’ under the FCRA when they serve as a factor in determining a person’s eligibility for housing, employment, credit, insurance, or other purposes and they include information ‘bearing on a consumer’s credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living.’

These reports can include insurance underwriting for auto insurance. These reports may detail driving history, accident reports, or insurance claims. They may also include traditional credit history information. Insurance companies may use this information to decide whether to extend an insurance policy, or whether to charge a particular premium for coverage.

Just like other CRAs covered by the FCRA, tenant screening companies must follow reasonable procedures to assure the maximum possible accuracy of the reports they prepare. If you receive notification of an “adverse action” by an insurance company, you are entitled to obtain a disclosure of the complete copy of your file. Review the file closely for inaccurate or incomplete information, and notify the CRA of any disputed information in writing.