IBC.Code

Question 1

identify IBC’s guidelines on the use of credit information

Answer 1

CAARA Choreographs a LAP Dance on Classical music
- Consent: require informed consent
- Adverse Action: must inform insured of adverse action due to cs
- no Refusal: can’t refuse to quote if insured doesnot give consent
- Accuracy: accurate info
- Can’t: cannot quote/deny/cancel based on cs
- Legislation: comply with provincial laws
- Appeal: insured can appeal negative action due to cs if caused by extraordinary life events
- Privacy: keep cs info private
- Double count: ensure cs is only used once in rating
- Complaint: must be handled in accordance with financial consumer agency of Canada

Question 2

discuss requirements for a credit score consent request for personal use = wordings of consent questions

Answer 2

Authorize What/How/How long and right to withdraw
- authorization from the customer to access credit info
- what info will be collected
- how the info will be used
- consent period
- notify customers that they have the right to withdraw but note they might not receive the best quote

Question 3

characteristics of informed consent

Answer 3

O.US
- obligated: customers should not feel obligated
- understand: understand scope of request
- specific: consent must be specific

Question 4

S2018 Q3
a customer refuses to give consent for cs because they believe a recent identity theft has adversely affected their cs.
Propose a process to meet both the best interests of the customer and IBC code of conduct for insurer’s use of credit information.

Answer 4

• customer may submit written statement explaining the event
• insurer may accept explanation and offer quote with adjusted credit score
• informed customer consent is still required
• if customer doesn’t consent, insurer cannot reject and must provide quote without using credit score

Question 5

identify considerations when using aggregate credit scores by postal code for pricing

Answer 5

• postal codes: insurer needs ways to handle low credibility postal codes
• laws: comply with all local laws and regulation
• accuracy: credit info should be up to date and accurate
• consent: require informed or deemed consent
• privacy: take reasonable steps to address privacy concerns