Ace the Chartered Life Underwriter Challenge 2026 – Secure Your Success and Dominate the Exam!

Insurers and their producers are required to comply with the Fair Credit Reporting Act (FCRA) when obtaining personal information from third parties. The FCRA specifically governs the collection, dissemination, and use of consumer information, particularly focusing on credit reporting. It establishes guidelines to ensure that consumers are informed about how their personal data is gathered and used, including the necessity for obtaining consent before certain information can be shared.

This law aims to protect consumer privacy and ensures they have the right to know what information is collected and how it may affect them. For example, when an insurer seeks to obtain a credit report or other personal information from a third-party source, they must follow the provisions set out by the FCRA, which include obligations for notifying consumers and allowing them to dispute inaccurate information.

The other laws mentioned, while relevant in different contexts, do not specifically address the requirements for insurers to obtain personal information from third parties. The Gramm-Leach-Bliley Act, for instance, focuses on the privacy of financial information and the sharing practices of financial institutions. The Health Insurance Portability and Accountability Act (HIPAA) deals primarily with the confidentiality of health information, and the Truth in Lending Act is concerned with transparent credit terms and disclosures rather than personal information gathering.