State RegulationsOH specificDifficulty 2/5
An Ohio insurer intends to order an investigative consumer report on an applicant for individual coverage. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Ohio's information-privacy framework in ORC 3904 and consumer-reporting principles require that an applicant be notified that an investigative consumer report may be obtained and give the consumer a way to request additional information about it. The report may lawfully support underwriting, but the applicant is not left in the dark about third-party interviews concerning their character and habits.
Why the other options are wrong
- A) Secret collection is contrary to the notice requirement; the applicant is entitled to know such a report may be ordered.
- C) The reports are permitted under Ohio law when proper notice and consumer rights are honored.
- D) Authorization and notice duties extend across the underwriting information process under ORC 3904; the physician statement is not the only document needing the applicant's authorization.
Memory hook
If friends get interviewed, the applicant gets told.