IBC Code of Conduct

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  1. Ensure credit information used is current and accurate
    • shall not use credit information that is not current: update at the customer’s request
    • re-rate and re-underwrite as soon as practicable after notification of correction
    • if insured has overpaid premium, insurer shall comply with pertinent refund regulation
    • at the customer’s request, insurer shall inform him of the source / supplier of information
    • the customer / applicant remains responsible for contacting agency to verify his file
  2. Gather prior consent to collect and use credit information
    • customer must not feel obligated to give consent
    • customers must understand the nature and scope of the request
    • consent must be specific and the insurer must not presume it’ll be given
    • consent can be given verbally, in writing or via e-medium (not pre-filled)
    • no one can give consent for another person
    • maintain trail of proof of consent; valid for policy duration (including renewal)
  3. Key elements to be included in consent request
    • authorization to collect information from consumer reporting agencies
    • nature of the information sought (e.g. credit information)
    • use made by the insurer of the credit information
    • consent use period (validity)
    • right to withdraw and consequences
  4. Use of credit as a sole variable
    • the insurer must not refuse to quote, renew, deny or cancel solely on the basis of credit information without consideration of other non-credit variables
    • Insurer must seek assurance that the following are not used as negative factors:
    •    inquiries by the consumer for his or her own credit information
    •    inquiries relating to insurance
    •    income, gender, address, ethnic group, religion, marital status, nationality
    •    multiple lender inquires from home mortgage industry within 30 days (can use one)
    •    multiple lender inquiries from auto lending industry within 30 days (can use one)
  5. Extraordinary life circumstances
    • if a customer believes that their credit has been impacted by an extraordinary life event, can elect to provide written request
    • insurer reviews decision to use credit information as rating / underwriting tool
    • exception can be granted by insurer, who would then re-rate
    • e.g. include identity theft, or catastrophic event as declared by provincial authorities
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IBC Code of Conduct
2014-04-12 18:07:58
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