§ 2804. Initial notification. An insurer writing personal lines
insurance which uses credit information in underwriting or rating a
consumer, shall disclose such fact to the consumer. The insurer shall
provide the disclosure required under this section to any insured on new
and renewal policies.

(a) The disclosure must be provided in a separate written document,
which need not be provided in a separate mailing as another document as
long as it is provided on a separate piece of paper, except that for new
business it may be provided either in writing or in the same medium as
the application for insurance.

(b) The disclosure must, in clear and specific language, comply with
the following:

(1) inform the consumer that it may obtain credit information in
connection with the application or renewal;

(2) give an explanation of insurance scoring;

(3) list typical items relative to a consumer's credit history that
could affect such score; and

(4) provide the name of the consumer reporting agency supplying the
credit data used in determining the score.

(c) Use of one of the following example disclosure statements
constitutes compliance with this section:

(1) "In connection with this insurance, we may review your credit
report or obtain or use a credit-based insurance score based on
information contained in that report. An insurance score uses
information from your credit report to help predict how often you are
likely to file claims and how expensive those claims will be. Typical
items from a credit report that could affect a score include, but are
not limited to, the following: payment history, number of revolving
accounts, number of new accounts, the presence of collection accounts,
bankruptcies and foreclosures. The information used to develop the
insurance score comes from (insert name.)"; or

(2) Use of the following example disclosure statement for renewal
business constitutes compliance with this section: "In connection with
this insurance, we previously used a credit report or obtained or used a
credit-based insurance score based on information contained in that
report. We may obtain or use credit information again provided, however,
that upon renewal such information may only be used to reduce premiums.
An insurance score uses information from your credit report to help
predict how often you are likely to file claims and how expensive those
claims will be. Typical items from a credit report that could affect a
score include, but are not limited to, the following: payment history,
number of revolving accounts, number of new accounts, the presence of
collection accounts, bankruptcies and foreclosures. The information used
to develop the insurance score comes from (insert name.)".

(d) If a new business application is taken over the telephone, an oral
disclosure may be provided by one of the following approaches:

(1) As described in subsections (a) through (c) of this section; or

(2) (A) By first disclosing the fact that the insurer may obtain
credit information in connection with such application, as indicated in
paragraph one of subsection (b) of this section. Use of the following
example disclosure constitutes compliance with this provision: "In
connection with this application for insurance, we may review your
credit report or obtain or use a credit-based insurance score based on
the information contained in that credit report."; and

(B) If a policy is issued, by supplying the information required under
paragraphs two, three and four of subsection (b) of this section. The
disclosure must be provided in a separate written document, which need
not be provided in a separate mailing as another document as long as it
is provided on a separate piece of paper. Use of the following example
disclosure constitutes compliance with this provision: "In connection
with this insurance, we reviewed your credit report or obtained or used
a credit-based insurance score based on information contained in that
report. An insurance score uses information from your credit report to
help predict how often you are likely to file claims and how expensive
those claims will be. Typical items from a credit report that could
affect a score include, but are not limited to, the following: payment
history, number of revolving accounts, number of new accounts, the
presence of collection accounts, bankruptcies and foreclosures. The
information used to develop the insurance score comes from (insert
name.)".