New York State Life Insurance Exam Questions Practice Question
The PRIMARY purpose of the Fair Credit Reporting Act is to
Correct Answer: D
Rationale: The Fair Credit Reporting Act (FCRA) aims to protect consumers by establishing guidelines that govern the use of credit information. This ensures that individuals have rights regarding their credit reports and are informed about how their data is used.
Option A incorrectly suggests that the FCRA primarily serves insurers, while its main focus is consumer protection. Option B, while related to consumer rights, does not encompass the full scope of the FCRA's purpose. Option C highlights a specific scenario (bankruptcy) but does not represent the overarching intent of the Act. Thus, option D accurately reflects the FCRA's primary goal of consumer protection through federal guidelines.
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