How does Connecticut law regard the use of credit information in the underwriting process?

In Connecticut, the use of credit information in the underwriting process is allowed under specific regulations, which include the requirement for consumer disclosure. Insurers are permitted to utilize credit information as part of their assessment of an individual's risk profile when determining premiums and coverage. However, this practice is governed by laws that mandate insurers to inform consumers about the use of such information. This transparency ensures that consumers are aware of how their credit history may influence their insurance rates and gives them the opportunity to dispute inaccuracies or understand how their credit information might affect their insurance options.

This regulation is designed to protect consumers while allowing insurers to make informed underwriting decisions. By requiring disclosure, the law ensures accountability and helps consumers maintain trust in the insurance process.