What is true when an applicant submits a life insurance application that involves an investigative consumer report?

When an applicant submits a life insurance application that involves an investigative consumer report, it is true that the applicant has a right to receive a copy of the report. This is in accordance with the Fair Credit Reporting Act (FCRA), which mandates that consumers be informed of their rights when it comes to information collected about them by consumer reporting agencies. The FCRA requires that if a report is used in connection with a decision to take an adverse action, such as declining coverage, the insurer must provide the applicant with a copy of the report and a summary of their rights.

Understanding this right is essential for applicants, as it ensures transparency in the underwriting process. They can review the information that may influence the insurer's decision and have the opportunity to address any inaccuracies in the report. Receiving a copy of the report fosters trust in the insurance process and allows consumers to make informed decisions about their coverage options.