Which statute requires a consumer to be informed if they are denied insurance based on an unfavorable consumer report?

The Fair Credit Reporting Act (FCRA) is the correct answer because it specifically mandates that consumers must be notified when their application for insurance is denied or adversely affected based on information contained in a consumer report. The FCRA aims to promote fairness and accuracy in the reporting of consumers' credit information and to ensure that consumers are given the right to know how the information in their credit reports may impact their access to credit and insurance. This statute requires insurers to provide a notice to consumers whenever adverse actions, such as denial of insurance, occur as a result of information sourced from credit reporting agencies.

Other statutes listed, while related to consumer rights and financial transactions, do not specifically cover the requirement to notify consumers regarding adverse decisions based on consumer reports in the same context as the FCRA. The Truth in Lending Act primarily addresses disclosures in credit transactions, the Insurance Information and Privacy Protection Act focuses on the privacy of insurance information, and the Consumer Financial Protection Act governs consumer protection in financial services more broadly without the specific requirement related to insurance denials based on consumer reports.