|
Q. What is A-PLUS?
A. ISO's Automobile-Property Loss Underwriting Service (A-PLUSTM) is a property and liability claims database designed for insurance underwriters.
Underwriters rely on claims information, along with many other factors, to determine whether to write an insurance policy and at what cost.
A-PLUS serves as a clearinghouse for claims data from many different insurance companies. The data shows the claims histories of individuals and properties. Participating insurers can search the database to find information for underwriting, to verify claims information provided by insurance applicants, and to help prevent fraud on applications for insurance.
»back to top
Q. How does A-PLUS work?
A. Insurance companies that want to participate in A-PLUS agree to report their claims to the database. Then, when a contributing insurer receives an application for insurance, the company's underwriting office (or a company-sponsored agent or broker) can submit a request for loss information about the applicant. The request includes brief information about the applicant and the property location.
The system searches the database for prior claims filed by that applicant and, if requested, for claims filed by other individuals at the risk location. The system returns a report containing details of past claims relating to the potential risk.
»back to top
Q. What information does an A-PLUS property report contain?
A. An A-PLUS property report sent to a contributing insurer contains information on any past claims and other losses associated with the home or commercial building. The report may contain claims submitted by the current owner or by a previous policyholder.
A-PLUS property reports provide up to five years of information on all types of loss, including:
- fire damage
- flood damage
- earthquake damage
- burglary
- credit card theft
- workers compensation
- medical payments
»back to top
Q. How do insurers use loss-history information received from A-PLUS?
A. Insurers may use A-PLUS loss-history reports only as an underwriting tool. Insurers may not use A-PLUS information for claims handling, special investigations, or any other unauthorized purpose.
A-PLUS reports are one of several criteria that go into an insurer's underwriting decisions. A-PLUS reminds insurers that they should investigate and evaluate the information in the loss-history reports as part of their overall underwriting process.
The insurer must also inform the consumer of any adverse action taken on an application based, whether in whole or in part, on information from the database.
»back to top
Q. How can I get my A-PLUS loss history?
A. Consumers are entitled to full disclosure of any data regarding their own claims that may be in the A-PLUS database. ISO releases the information within 10 days of receiving a signed "Request for Disclosure" form. To obtain a copy of the form, or for more information, call 1-800-709-8842, or write to:
A-PLUS Consumer Inquiry Center
ISO
545 Washington Boulevard, 22nd floor
Jersey City, NJ 07310-1686
»back to top
Q. How much does it cost?
A. The standard price for a loss-history report is $19.50.
You can get a copy of your report free of charge if an insurer took an adverse action against you — for example, if an insurer denied coverage within the past 60 days — based on a report submitted to A-PLUS by a participating insurer.
»back to top
Q. Can I get a copy of the A-PLUS report on a house I intend to buy?
A. You can order an A-PLUS report for verifying your prior claims on your own property — but not on other property, such as a property you're planning to buy.
A-PLUS reports are available only to individuals with a "permissible purpose" under the federal Fair Credit Reporting Act. Insurers, their authorized agents, individuals who have filed claims, and property owners can request reports from A-PLUS.
Because of federal privacy laws, a potential home buyer cannot request personal information relating to another person (that is, the seller). However, you may ask the seller to obtain a copy of his or her own A-PLUS report and give it to you before the sale.
»back to top
Q. What if I think the information in my A-PLUS property report is inaccurate?
A. If you disagree with or dispute the accuracy of information in the A-PLUS database, A-PLUS will contact the insurer that submitted the claim and request an investigation. Pending the outcome of the investigation, we will add a statement of dispute to your claims record if you request it. If the insurer does not investigate the disputed claim within 30 days of notification, A-PLUS will delete the claim from the database.
If, after investigation, the insurer stands by the claim and does not agree to remove it, you may submit a statement of dispute on that claims record. Your statement of dispute then becomes available as part of the A-PLUS report in any future inquiries by any insurer.
»back to top
Q. It's been widely reported that insurers have declined to write coverage because consumers made simple requests for information about coverage. According to the reports, insurers have treated such requests for information as claims and have submitted the information to databases like A-PLUS. Such information supposedly made the consumers appear to be worse risks than they were. How does A-PLUS treat inquiries that don't involve loss?
A. A-PLUS policy specifically instructs insurers to report only claims — not records of inquiries that don't involve loss. A-PLUS also requires insurers to report a case file number or claim number for each claim.
However, if the customer contact is related to an actual loss — such as a water leak — the insurer may keep a record of the event. If the company opens a claim file, it will assign a file number and claim adjuster, investigate and process the claim, and make payment(s), if appropriate. The insurer also will report the data to A-PLUS as a loss-producing event.
»back to top
Q. How does A-PLUS safeguard consumers' claims-history information and privacy rights?
A. A-PLUS services comply with the Fair Credit Reporting Act (FCRA) and conform to all applicable federal and state laws and regulations.
Those laws and regulations permit insurers to exchange information with A-PLUS. The FCRA also protects the claims-history information insurers report to us and the end uses of that information.
We have stringent privacy, data-protection, and nondisclosure policies and practices that meet all FCRA requirements. Only authorized individuals — underwriters of participating insurance companies and company-sponsored agents and brokers — can access A-PLUS information. Those individuals can use the information only for underwriting purposes. Users of A-PLUS must access and use the information in a manner consistent with all laws and regulations. They must keep the information secure from damage and destruction. A-PLUS has both the capability and procedures in place to audit access and use of database information. Users violating privacy and security policies face sanctions commensurate with the violation.
»back to top
Q. Many states have proposed legislation banning or restricting the use of loss-history reports in underwriting, rating, canceling, or not renewing coverage. How will such legislation affect the ability of A-PLUS to provide loss-history information to consumers and insurers?
A. We're aware of proposed legislation in several states that could restrict insurers' use of information related to inquiries about terms and conditions of insurance coverage.
We don't believe such laws would affect A-PLUS, because the information in the database relates specifically to instances where insurers have opened claim files and assigned claim numbers — not to inquiries that don't involve loss.
»back to top
Q. Do the provisions of the Gramm-Leach-Bliley (GLB) Financial Services Modernization Act apply to A-PLUS?
A. Title V of the GLB Act restricts insurers' disclosure of personal financial information. Insurers have made many changes in response to the new law. However, GLB contains a specific exception for information provided to consumer reporting agencies regulated by the Fair Credit Reporting Act. Because A-PLUS is subject to the FCRA, GLB does not apply to A-PLUS and does not affect our procedures.
»back to top
Q. Who benefits from the availability of A-PLUS loss-history reports?
A. Loss-history reports benefit both insurers and consumers.
Insurer access to inexpensive loss-history reports can speed insurance transactions and reduce the cost of underwriting. The reports reveal information that helps insurers underwrite properly and fairly. The reports also help detect fraud on insurance applications and reduce insurance losses.
So, A-PLUS helps reduce the cost of insurance overall, as well as the cost of specific property policies.
»back to top
|
Information about property/casualty insurance risk