Under the Fair Credit Reporting Act, when must an applicant be informed of their rights?

• A. Upon completion of the application
• B. At the time of policy issuance
• C. One year after applying
• D. Upon receipt of the premium

Answer: (A)

When a consumer report may be used to evaluate an insurance application, the applicant must be informed of their rights at the time the application is completed. This notice ensures the applicant knows they can obtain a copy of their report, dispute information they believe is inaccurate, and understand that the report may be used in underwriting. Providing this information upfront helps the applicant review and address any issues before a decision is made, not after policy issuance or once a premium is already paid.