Information collected from a third party for insurance underwriting may be subject to which act?

The Fair Credit Reporting Act (FCRA) is applicable when it comes to information collected from third parties for insurance underwriting purposes. This federal law regulates the collection, dissemination, and use of consumer information, including credit information. It establishes guidelines that ensure that consumers are treated fairly and that their personal information is handled responsibly.

Under the FCRA, insurers must inform consumers when they use third-party reports for underwriting policies, and consumers have the right to access their credit information and dispute any inaccuracies. This transparency is crucial in the insurance process, as underwriting relies heavily on accurate and fair assessments of risk based on the consumer's creditworthiness.

This act plays a vital role in protecting consumers' rights while allowing insurers to make informed underwriting decisions based on collected data. Therefore, the relevance of the Fair Credit Reporting Act in relation to third-party information collection for underwriting is direct and significant, making it the correct choice for this question.