CARD Q021
An insurer takes adverse action based on a consumer report. Which federal law principally governs the related consumer-report protections?
- FCRA
- ERISA
- ACA
- COBRA
FCRA
The Fair Credit Reporting Act governs consumer reports and applicable adverse-action notices. It is distinct from continuation coverage and health-reform rules.
Why each choice is right or wrong
A. FCRA
Correct. The Fair Credit Reporting Act governs consumer reports and applicable adverse-action notices. It is distinct from continuation coverage and health-reform rules.
B. ERISA
Incorrect. ERISA concerns many employee benefit plans, not the principal consumer-report framework.
C. ACA
Incorrect. The ACA addresses health-coverage reforms, not this reporting-law duty.
D. COBRA
Incorrect. COBRA concerns temporary group health continuation.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.