Health Insurance Mastery Practice Exam

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Master the Health Insurance Exam with insightful questions and detailed explanations. Prepare effectively with comprehensive flashcards and multiple-choice questions. Ace your test confidently!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What requirement regarding insurance applicants is imposed by the Fair Credit Reporting Act?

Obtain fingerprints of all applicants
Provide a guaranteed acceptance policy
Reveal identity of credit reporting agencies to denied applicants
Allow unlimited credit inquiries without penalties

The correct answer is: Reveal identity of credit reporting agencies to denied applicants

The Fair Credit Reporting Act (FCRA) mandates that if a consumer is denied insurance based on information from a credit reporting agency, they have the right to know which agency provided the report that negatively influenced the decision. This ensures transparency and allows the applicant to understand the basis for their denial. By revealing the identity of the credit reporting agencies involved, the FCRA empowers consumers to correct any inaccuracies in their credit reports, promoting fairness in the insurance application process. The other options do not align with the provisions of the FCRA. Obtaining fingerprints is not a requirement under this act, nor is there a mandate for guaranteed acceptance policies in insurance applications. Additionally, while applicants can request their credit reports, the FCRA does not permit unlimited credit inquiries without consequences; rather, it regulates how often and under what conditions inquiries can be made to protect consumer privacy and credit integrity.