The concept of adverse action refers to a decision made by an insurance company that negatively impacts an individual’s application for coverage or existing policy. This can include denying assurance, increasing premiums, or modifying terms.

The company is typically required to provide an adverse action notice to the individual, informing them of the specific reasons for the decision and any rights they may have to review their credit report, which is a detailed record of an individual’s credit history.

It is important to review the adverse action notice and credit report to understand the reasons behind the decision and to take any necessary steps to address any inaccuracies or improve one’s creditworthiness.