If an insurer takes an adverse action based on credit information, it must notify the consumer and explain the reason clearly, including up to four primary factors.
NOTE: §1509 eff. until July 1, 2026. See Acts 2025, No. 465. §1509. Adverse action notification If an insurer takes an adverse action based upon credit information, the insurer must meet the notice requirements of this Section. Such insurer shall: (1) Provide notification to the consumer that an adverse action has been taken in accordance with the requirements of the federal Fair Credit Reporting Act, 15 U.S.C. 1681m(a). (2) Provide notification to the consumer explaining the reason for the adverse action. The reasons shall be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer's decision to take an adverse action. Such notification shall include a description of up to four factors that were the primary influences of the adverse action. The use of generalized terms such as "poor credit history", "poor credit rating", or "poor insurance score" does not meet the explanation requirements of this Section. Standardized credit explanations provided by consumer reporting agencies or other third-party vendors are deemed to comply with this Section. NOTE: §1509 eff. July 1, 2026. See Acts 2025, No. 465. §1509. Adverse action notification If an insurer takes an adverse action based upon credit information, the insurer shall do both of the following: (1) Provide notification to the consumer that an adverse action has been taken in accordance with the requirements of the federal Fair Credit Reporting Act, 15 U.S.C. 1681m(a). (2) Provide notification to the consumer explaining the reason for the adverse action. The reasons shall be provided in sufficiently clear and specific language so that a person can identify the basis for the insurer's decision to take an adverse action. The notification shall include a description of up to four factors that were the primary influences of the adverse action. The use of generalized terms such as "poor credit history", "poor credit rating", or "poor insurance score" does not meet the explanation requirements of this Section. Standardized credit explanations provided by consumer reporting agencies or other third-party vendors are deemed to comply with this Section. Acts 2003, No. 1256, §1; Redesignated from R.S. 22:1489 by Acts 2008, No. 415, §1, eff. Jan. 1, 2009; Acts 2025, No. 465, §1, eff. July 1, 2026.