Fair Credit Reporting Act (FCRA): when an insurer checks your credit or character during underwriting, this federal law sets the rules. It was enacted on October 26, 1970 and took effect 180 days later, in 1971.
Two report types: a consumer report (credit history, character, general reputation) and an investigative consumer report (information gathered by interviewing neighbors, friends or associates).
Time limits: bankruptcies older than 10 years and most other adverse items older than 7 years cannot be reported. These limits do not apply when the report is used for life insurance underwriting involving a face amount of $150,000 or more (or credit of $150,000 or more), so older items can appear in those cases.
Willful violations: the consumer can recover actual damages or statutory damages of $100 to $1,000, plus punitive damages.
18 U.S.C. §1033 (crimes by or affecting persons in the business of insurance):
A person convicted of a felony involving dishonesty or breach of trust (or of a §1033 offense) may not willfully engage in the business of insurance without the written consent of an insurance regulatory official (commonly called a 1033 waiver). Doing so is punishable by a fine, up to 5 years in prison, or both.
Knowingly making false statements or reports to regulators to influence them, or embezzling from an insurer: up to 10 years, or up to 15 years if it jeopardized the insurer's safety and soundness and was a significant cause of its conservation, rehabilitation or liquidation.
18 U.S.C. §1034 adds a civil penalty of up to $50,000 per violation, or the compensation received, whichever is greater.