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Consumer Credit Disclosure

Consumer Credit Disclosure for Insurance

Effective Date: September 22, 2024

This Consumer Credit Disclosure provides important information regarding the use of your credit information and insurance scores in determining your insurance premiums and eligibility. Please read this document carefully.

1. Introduction

This disclosure outlines key information regarding how your credit history and insurance score may affect your insurance rates. It is designed to comply with federal and state laws, including those of Connecticut, New York, Florida, and South Carolina.

2. Key Information Regarding Your Insurance Score

To offer an accurate quote in connection with this application for insurance, Orion Financial Services LLC and its agents may use a credit-based insurance score developed by a third party. The insurance score is based on information contained in the owner’s credit report, and future reports may be used to update or renew insurance.

  • Insurance Score: Your insurance score reflects your creditworthiness and is used to help determine your insurance premium. It is not a direct reflection of your credit score.
  • Factors Affecting Your Insurance Score:
    • Payment history
    • Amount of debt
    • Length of credit history
    • Types of credit in use
    • Recent credit inquiries

3. Impact of Your Insurance Score on Premiums

Your insurance score may influence the rates you are offered. A higher score may lead to lower premiums, while a lower score may result in higher premiums or reduced coverage options.

  • Any request to view your insurance score is considered a “soft inquiry” and will not have any effect on your insurance score.

4. Consumer Rights Under Federal and State Law

Fair Credit Reporting Act (FCRA)

Under FCRA, you have rights concerning your credit information as it relates to insurance:

  • You are entitled to a free copy of your credit report from credit reporting agencies upon request.
  • If your insurance application is denied or if you receive a higher premium due to your insurance score, you will be notified and provided information on how to obtain a copy of your credit report.
  • You have the right to dispute inaccurate information in your credit report.

State-Specific Rights

Connecticut

  • Connecticut Insurance Data Security Law: Ensures that your personal information is handled securely and that you are notified of any breaches affecting your data.

New York

  • New York Insurance Law: Requires insurers to provide clear disclosure regarding how credit information affects insurance rates.

Florida

  • Florida Statutes Chapter 627.6045: States that insurers must disclose the use of credit history and how it impacts premiums, including providing information on how to obtain credit reports.

South Carolina

  • South Carolina Code of Laws § 38-75-755: Mandates insurers to inform applicants if credit information is used in underwriting and to provide a written notice of the use of credit scoring.

5. Acknowledgment of Disclosure Requirements

By proceeding with a request for a quote, you acknowledge and confirm compliance with disclosure requirements regarding the use of your credit information and insurance score.

6. How to Access Your Rights

If you believe your rights have been violated or if you have questions regarding your insurance score and its impact on your premiums, you can contact:

  • Consumer Financial Protection Bureau (CFPB)

  • State Insurance Departments for state-specific concerns.

7. Contact Us

For questions about this Consumer Credit Disclosure or how your insurance score may affect your premiums, please contact us.