2013 New York Consolidated Laws
ISC - Insurance
Article 28 - (2801 - 2809) USE OF CREDIT INFORMATION
2804 - Initial notification.

 
    §  2804.  Initial  notification.  An  insurer  writing  personal lines
  insurance which uses credit information  in  underwriting  or  rating  a
  consumer,  shall  disclose  such fact to the consumer. The insurer shall
  provide the disclosure required under this section to any insured on new
  and renewal policies.
    (a) The disclosure must be provided in a  separate  written  document,
  which  need not be provided in a separate mailing as another document as
  long as it is provided on a separate piece of paper, except that for new
  business it may be provided either in writing or in the same  medium  as
  the application for insurance.
    (b)  The  disclosure must, in clear and specific language, comply with
  the following:
    (1) inform the consumer that  it  may  obtain  credit  information  in
  connection with the application or renewal;
    (2) give an explanation of insurance scoring;
    (3)  list  typical  items relative to a consumer's credit history that
  could affect such score; and
    (4) provide the name of the consumer reporting  agency  supplying  the
  credit data used in determining the score.
    (c)  Use  of  one  of  the  following  example  disclosure  statements
  constitutes compliance with this section:
    (1) "In connection with this insurance,  we  may  review  your  credit
  report  or  obtain  or  use  a  credit-based  insurance  score  based on
  information  contained  in  that  report.  An   insurance   score   uses
  information  from  your  credit report to help predict how often you are
  likely to file claims and how expensive those claims  will  be.  Typical
  items  from  a  credit report that could affect a score include, but are
  not limited to, the following:  payment  history,  number  of  revolving
  accounts,  number  of new accounts, the presence of collection accounts,
  bankruptcies and foreclosures.  The  information  used  to  develop  the
  insurance score comes from (insert name.)"; or
    (2)  Use  of  the  following  example disclosure statement for renewal
  business constitutes compliance with this section: "In  connection  with
  this insurance, we previously used a credit report or obtained or used a
  credit-based  insurance  score  based  on  information contained in that
  report. We may obtain or use credit information again provided, however,
  that upon renewal such information may only be used to reduce  premiums.
  An  insurance  score  uses  information  from your credit report to help
  predict how often you are likely to file claims and how expensive  those
  claims  will  be. Typical items from a credit report that could affect a
  score include, but are not limited to, the following:  payment  history,
  number  of  revolving  accounts, number of new accounts, the presence of
  collection accounts, bankruptcies and foreclosures. The information used
  to develop the insurance score comes from (insert name.)".
    (d) If a new business application is taken over the telephone, an oral
  disclosure may be provided by one of the following approaches:
    (1) As described in subsections (a) through (c) of this section; or
    (2) (A) By first disclosing the  fact  that  the  insurer  may  obtain
  credit  information in connection with such application, as indicated in
  paragraph one of subsection (b) of this section. Use  of  the  following
  example  disclosure  constitutes  compliance  with  this  provision: "In
  connection with this application  for  insurance,  we  may  review  your
  credit  report  or obtain or use a credit-based insurance score based on
  the information contained in that credit report."; and
    (B) If a policy is issued, by supplying the information required under
  paragraphs two, three and four of subsection (b) of  this  section.  The
  disclosure  must  be provided in a separate written document, which need
  not be provided in a separate mailing as another document as long as  it

  is  provided  on a separate piece of paper. Use of the following example
  disclosure constitutes compliance with this  provision:  "In  connection
  with  this insurance, we reviewed your credit report or obtained or used
  a  credit-based  insurance  score based on information contained in that
  report. An insurance score uses information from your credit  report  to
  help  predict  how often you are likely to file claims and how expensive
  those claims will be. Typical items from  a  credit  report  that  could
  affect  a  score include, but are not limited to, the following: payment
  history, number of revolving  accounts,  number  of  new  accounts,  the
  presence  of  collection  accounts,  bankruptcies  and foreclosures. The
  information used to develop  the  insurance  score  comes  from  (insert
  name.)".