Massachusetts State Life Insurance Practice Exam

Question: 1 / 475

When must a life insurance applicant be informed of their rights under the Fair Credit Reporting Act?

Before submitting the application

After the application is completed

A life insurance applicant must be informed of their rights under the Fair Credit Reporting Act after the application is completed. This timing is important because it allows the insurer to provide the applicant with the required disclosures once they have gathered the application information. The Fair Credit Reporting Act mandates that applicants should be aware of their rights concerning their credit reports, especially since insurers may use these reports to assess risk and determine eligibility for coverage.

Informing the applicant after the application process ensures that they receive pertinent information regarding how their credit data might be utilized by the insurer, including rights to request corrections or dispute inaccuracies. This communication is integral to maintaining transparency and protecting the consumer's interests in the insurance process.

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During the underwriting process

At the time of policy delivery

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