Life License Qualification Program (LLQP) Practice Exam 2025 – Comprehensive All-in-One Guide to Exam Success!

An applicant for life insurance must be informed of their rights under the Fair Credit Reporting Act upon completion of the application because this timing allows the applicant to understand how their credit information will be used in the underwriting process. The Fair Credit Reporting Act mandates that consumers be notified of their rights regarding the use of consumer reports, including the right to dispute any inaccuracies. By providing this information at the time of application completion, the insurer ensures that the applicant is fully aware of their rights as they proceed with the application, thereby promoting transparency and consumer protection.

Providing this information at other times—such as before the appointment or at delivery of the policy—would not align with the intent of the Act, which focuses on informed consent in the context of the application process. Also, notifying the applicant solely upon receipt of the MIB report would not adequately inform them of their rights related to all sources of consumer reporting, which is critical for informed decision-making in choosing whether to proceed with the application.