Insurance Report Errors

Key Takeaways

• Insurance report errors include inaccurate, misleading, incomplete, false, outdated, or unreportable information
• Common errors include identity mix-ups, duplicate entries, incorrect loss record, wrong claims history, and false fraud alerts
• Insurance reporting errors can cause policy denials, higher premiums, limited coverage, and interfere with home and car purchases
• Consumers have the right to dispute insurance reporting errors under the Fair Credit Reporting Act (FCRA)
• If errors aren’t corrected or cause harm, an insurance report error lawyer helps consumers pursue corrections and seek compensation

What Are Insurance Report Errors?

An insurance report error is a data error that shows up in an insurance report during the insurance application process. Insurance reports are used by underwriters to determine whether to approve or deny an insurance policy application and to set premium amounts and coverage limits.

Errors in an insurance report can show up in any of the various categories of information, including claims history, personal identifying information, driving records, and more.

Common Types of Insurance Report Errors

1. Mixed file errors: Your information is combined with someone else’s information because of a similar name, birthdate, or Social Security Number
2. Inaccurate personal information: Wrong names, addresses, or Social Security numbers
3. Incorrect claims history: Wrong dates, phantom claims, and duplicate claims
4. Inaccurate loss records: Claim amount is overstated
5. Dupicate entries: The same entries appearing multiple times as exact duplicates or being reported repeatedly in slightly different ways
6. Outdated or unreportable information: Data that should have aged-off your report or should not be reported at all under state law
7. Incorrect property information: Wrong address, ownership information, or risk data
8. Fraud alert errors: You get falsely flagged as a fraud risk
9. Inaccurate driving record: Motor vehicle violations and licensing status reported wrong
10. Accident history errors: Incorrect information about car, boat, or other accidents

How Insurance Report Errors Harm You

Insurance screening reports are used by insurance companies and underwriters to assess rental applications and make decisions on approvals, denials, premium amounts, and coverage limits, so insurance report errors can have serious consequences like blocking access to important insurance products, causing financial damage, and potentially impacting major purchases.

Common Consequences of Insurance Report Errors

• Insurance coverage denials. Whether you’re looking for homeowners insurance, car insurance, boat insurance, health insurance, umbrella coverage, or other insurance products, you can be flagged as a risk and denied.
• Increased premiums. Even if you’re approved for insurance, inaccurate or misleading data can mean that you get stuck with higher premiums.
• Policy non-renewal. The fact that you already have a policy is meaningless if the information in your insurance report causes your coverage to get dropped.
• Reduced coverage limits. Policy approval is the first hurdle, getting the right coverage limit is the next. If you can’t pass the second hurdle, you may not have adequate insurance.
• Interefernce with major purchases. If you have difficulty obtaining homeowners or auto insurance, it can prevent you from finalizing a purchase if your mortgage or auto loan requires proof of active insurance.
• Mental and emotional distress. From missing out on long-awaited opportunities to losing sleep due to worry, or being plagued by anxiety, the toll these errors take is real.
• Damage to reputation. Unfounded and false accusations, particularly fraud-related data, can damage your reputation.
• Financial losses. Wasted application fees, artifically high premiums, lost expenses associated with a purchase that falls through, and other financial losses.

What Information Appears in an Insurance Consumer Report?

The information in an insurance report can differ depending on the specific insurance product in question, but these are the primary categories may be included.

• Insurance claims history
• Personal identifying information
• Property information
• Driving history
• Prior insurance coverage
• Risk assessment data
• Public records

Errors can appear in any of these categories of information.

Signs Your Insurance Report May Contain Errors

If you experience any of these events, you should carefully review your entire insurance report for errors and prepare to dispute mistakes, relying on your rights under the Fair Credit Reporting Act.

1. Sudden premium increase
2. Coverage denial without explanation
3. Unexpected non-renewal notice
4. Insurer references claims you do not recognize
5. Inaccurate personal information
6. Claims history that appears incomplete or incorrect

Major Insurance Products That Commonly Use Insurance Reports

Any of these common policies can be impacted by insurance report errors during the application process or during ongoing screenings prior to renewals.

• Auto insurance
• Homeowners Insurance
• Renters Insurance
• Boat Owners/Marine Insurance
• Life Insurance
• Disability Insurance
• Long-Term Care Insurance
• Umbrella Insurance

What Companies Create Insurance Reports?

Insurance companies frequently rely on reports from specialty consumer reporting agencies such as LexisNexis Risk Solutions, Verisk Analytics, and the credit bureaus.

Your Rights Under the Fair Credit Reporting Act (FCRA)

The Fair Credit Repoting Act protects consumers by regulating reports made by consumer reporting agencies and giving consumers strong legal rights to clear errors. Insurance background check companies are consumer reporting agencies under the law and must follow the same accuracy requirements that the credit bureaus and other background check companies must follow.

Under the FCRA, Consumers Have the Right To:

• An accurate insurance screening report
• Obtain a copy of your report at the time that it’s run
• Know when a report was used against you in an insurance decision
• Dispute inaccurate information in the report
• Have your dispute investigated and responded to within 30 days
• Seek compensation when your rights are violated
• Have your legal fees paid for by the insurance screening company when you successfully challenge them

How to Dispute an Insurance Report Error

Taking these steps to dispute your insurance report errors will set you on the path toward recovery.

1. Get copies of your insurance report. You have a right to receive and review a copy of your insurance report at the time that it’s run in connection with an application you submitted. If you didn’t receive a copy automatically, you can request one directly from the insurance screening company.
2. Review your insurance background check report for mistakes. Carefully review your report. Go through line by line, highlighting or clearly marking any errors in your personal information, claims and accident history, property information, driving record, and other details. You are looking for any inaccurate, misleading, incomplete, outdated, duplicate, or unreportable information.
3. Gather evidence. You’ll need to include copies of supporting documents and reference them in your dispute letter.
4. Write a dispute letter. Prepare a clear and thorough dispute letter, listing specific errors, explaining why the information is wrong, and describing the evidence you have to support your position. What is wrong, why it’s wrong, and what proof you have.
5. Submit your dispute. You file an insurance report dispute with the insurance background check company that created the report using their online dispute portal or mailing address. We recommend filing via certified mail to preserve all of your legal rights and create a paper trail that is under your control, including proof of receipt.
6. Keep copies of everything. Maintain a copy of the letter and the documents for your file, along with the mail receipt.
7. Track the timing. The insurance background check company has 30 days to respond in most instances.
8. Consider legal action. You can explore legal options with an insurance report errors lawyer at any point in the process, including the option to file a lawsuit and seek compensation.

When Should You Contact an FCRA Lawyer?

Correcting insurance report errors is something you can do on your own and many people have successful outcomes. However, what should be simple can also be turned into a complicated and convoluted process by the background check companies and other companies involved. If this is the case, you should consider contacting an insurance report errors lawyer, also called an FCRA lawyer.

Reasons to Contact an FCRA Lawyer

• Your dispute is ignored
• Your dispute is not adequately investigated
• The information in dispute is falsely confirmed as accurate by the insurance screening company
• The information in dispute is removed but returns again
• You suffered financial or other harm as a result of an insurance report error

What Does an Insurance Report Errors Lawyer Do?

1. Supports the entire process. An insurance report error lawyer navigates the entire process with you, from the first minute you realize there’s an error until the final moment when you get corrections and compensation.
2. Researches and explains the law. Understanding the specific facts of your situation in light of the applicable law are how a lawyer builds a strong claim. A lawsuit should go after the insurance screening company using every possible legal option available.
3. Understands the problems. An experienced insurance report lawyer has seen, heard, and handled every type of reporting error.
4. Anticipates legal challenges. A lawyer knows the tactics used by the insurance background check companies and other companies to delay doing anything to fix reporting errors.
5. Provides personalized legal guidance. A lawyer helps you review and understand your insurance report, where the information is coming from, identify and gather necessary evidence, craft and file legally sound dispute letters, and advise you of your rights and best practices along the way.
6. File a strategic lawsuit. If your insurance report errors aren’t corrected or the fallout persists, a lawyer files a lawsuit to hold the consumer reporting agency accountable.
7. Seeks compensation. If you’ve been harmed by insurance screening errors and you’re entitled to compensation, a lawyer knows how to make the claim and maximize the potential outcome.

How Much Does an Insurance Report Lawyer Cost?

The Fair Credit Reporting Act contains a fee-shifting provision which allows you to get legal help from an attorney without paying anything upfront or out of pocket. If you work with an insurance report error lawyer who uses this fee model, the insurance background check company pays your legal expenses when you successfully challenge them.

You can also get a free consultation so that you pay nothing to have your case evaluated by a lawyer.

Key Takeaways on Costs

• Free consultation
• No out-of-pocket attorney fees
• Fee-shifting provisions under the FCRA
• Recovery of attorney fees from defendants when permitted by law

Contact Consumer Justice Law Firm

We have one of the largest consumer reporting law firms in the nation for a reason. Our team of experienced consumer protection attorneys are dedicated to protecting your consumer rights under the FCRA.

If you’ve been harmed by insurance reporting errors, reach out for a free consultation and personalized legal action plan from Consumer Justice Law Firm.

Frequently Asked Questions

Can an insurance company deny coverage because of a report error?

Yes. Insurers rely on the information in the insurance report and assume it is accurate. They can deny coverage, limit coverage, opt not to renew a prior policy, or set higher premiums based the information in the report. If the report contains insurance errors, the consumer must dispute them and reapply.

How can I get a copy of my insurance report?

You have a right to receive a copy of your insurance report at the time it is run in connection with your application for an insurance product or at any time that it is used to make an adverse decision against you. You can request a copy directly from the insurance screening company that created or the insurance company.

What is an insurance consumer report?

An insurance consumer report is a consumer report listing someone’s insurance-related information, including personal identifying information, claims and accident history, property ownership details, driving record, and other information. It is used by insurance companies to make decision about whether to approve or deny applications and to set premiums and coverage limits.

How long does an insurance dispute investigation take?

A proper dispute filed with the consumer reporting agency that prepared the report should take approximately 30 days due to legal obligations under the Fair Credit Reporting Act. However, disputes can be ignored and inadequately investigated and errors can go uncorrected.

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