A Massachusetts insurer hires an outside firm to prepare a report on an applicant, and the firm interviews the applicant's neighbors and business associates about the applicant's character and activities. Under M.G.L. c. 175I, § 7, what must the insurer do in connection with this investigative consumer report?

Why C is correct

M.G.L. c. 175I, § 7 governs investigative consumer reports, which gather information on an individual's character, reputation, and activities through personal interviews with associates and neighbors. Before ordering or using such a report, the insurer must notify the individual and honor the individual's right to request information about the report's contents. The Massachusetts Division of Insurance enforces this protection under the Insurance Information and Privacy Protection Act, and third-party interviews are squarely within the statute rather than outside it.

Why the other options are wrong

• A) Interviews with third parties are the defining feature of an investigative consumer report, which is precisely what M.G.L. c. 175I, § 7 regulates.
• B) The statute requires notice to the individual, not prior approval from the Commissioner, under M.G.L. c. 175I, § 7.
• D) Filing the report with the regulator is not the statutory duty; M.G.L. c. 175I, § 7 centers on notice to and rights of the individual reported on.

Memory hook

Neighbors interviewed? Tell the applicant — § 7 notice and a right to ask what they said.