Pennsylvania Life and Health Insurance Exam Practice Question
What is the purpose of the Fair Credit Reporting Act?
Correct Answer: D
Rationale: The Fair Credit Reporting Act (FCRA) serves multiple purposes in safeguarding consumer rights. It regulates the collection and use of credit information (B), ensuring that consumers are treated fairly in credit transactions. Additionally, it aims to protect applicants from discrimination by insurers (A) and mandates that insurers utilize accurate and updated information (C) to make informed decisions. Since all these aspects are integral to the FCRA's mission of promoting transparency and fairness in credit reporting, option D encompasses the complete purpose of the Act, while the other options only address specific components.
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