Which act governs the use of credit reports in insurance underwriting?

The Fair Credit Reporting Act (FCRA) regulates the use of credit reports, particularly in contexts such as insurance underwriting. This act establishes the legal framework for how consumer credit information can be obtained and used by insurers, ensuring that individuals are informed about the use of their credit information in underwriting decisions. Under the FCRA, insurers must provide clear disclosure to applicants if their credit report has influenced their insurance underwriting decision and individuals have the right to dispute inaccurate information.

While other acts, like HIPAA, are important for privacy in healthcare contexts, or ERISA and COBRA which pertain to employee benefits, they do not govern the utilization of credit reports in insurance underwriting. Thus, the FCRA is the relevant legislation that specifically addresses how credit information must be handled and the rights consumers have regarding that information.