What is true regarding an investigative consumer report in life insurance underwriting?

An investigative consumer report in life insurance underwriting provides valuable information about the applicant's character, reputation, and lifestyle, often gathered through personal interviews with acquaintances, neighbors, or associates. One key aspect of consumer rights regarding these reports is that applicants are entitled to receive a copy of the report. This ensures transparency and allows the applicant to understand the information being considered during the underwriting process. Additionally, if the insurer takes any adverse action based on the findings in the report, the applicant has a right to be informed and can request a copy to review.

The other choices do not accurately reflect the rights of applicants concerning investigative consumer reports. For example, applicants can access the report, contrary to the first choice, and they are typically not required to pay for it, as it is the insurer's responsibility to obtain the report. Additionally, investigative consumer reports are used in underwriting to assess risk accurately, making the last option incorrect.