P has recently signed an application for insurance. The insurer MUST advise her in writing that an investigative consumer report may be conducted according to the:

The correct answer is based on the requirements of the Fair Credit Reporting Act (FCRA), which mandates that if a consumer report or an investigative consumer report is to be obtained in connection with an insurance application, the insurer must inform the applicant that such a report may be conducted. This is to ensure transparency and provide the individual with the opportunity to understand how their information might be used.

The FCRA focuses specifically on the use of consumer reports and gives consumers certain rights in relation to their data, including being informed when a report is being requested. This notification is crucial as it allows consumers to be aware of the possibility of their personal information being assessed by the insurer for underwriting or other purposes.

In contrast, the other acts mentioned have different scopes and purposes. The Insurance Information and Privacy Protection Act deals with the collection and sharing of personal information by insurers but does not specifically require the notification regarding investigative consumer reports. The Consumer Protection Act generally addresses unfair and deceptive practices in commerce but is not specifically concerned with insurance disclosures. The Federal Insurance Regulatory Act is not a commonly referenced act in terms of consumer reports and insurance practices, focusing instead on regulatory oversight in broader terms.

Understanding the significance of the Fair Credit Reporting Act in the context of insurance applications is key for anyone in