Which law permits an insurer to obtain an inspection report on a potential insured?

The Fair Credit Reporting Act (FCRA) is the law that allows an insurer to obtain an inspection report on a potential insured. This act regulates the collection, dissemination, and use of consumer credit information and sets the framework for how entities such as insurers can gather information about an individual's creditworthiness and other relevant details.

The FCRA ensures that consumers are informed about the information that is collected about them, including the ability to obtain inspection reports, which can play a significant role in insurance underwriting decisions. Insurers may rely on this information to assess risk and determine eligibility for coverage, as well as to set premium rates.

This law also includes provisions to protect consumers, such as requiring insurers to obtain consent before accessing these reports and allowing individuals to dispute inaccurate information. This regulatory framework aims to strike a balance between the insurer's need for information to make informed underwriting decisions and the consumer's right to privacy and fair treatment.