Order MVR's

Ordering MVR'S From Insurance Carriers

Changes in the Fair Credit Reporting Act have necessitated a change in procedures regarding a service our insurance carriers have offered our clients for many years.

Most Insurance Companies can no longer provide clients with Motor Vehicle Reports (MVR’s).

This is because Insurance Carriers have been determined not to be "Consumer Reporting Agencies" as defined in the Fair Credit Reporting Act.

In the future, as part of their normal insurance underwriting procedures, insurance companies may request driver license information and obtain MVR’s only for their insurance underwriting considerations, and will only advise you if the respective driver does or does not meet their current underwriting standards.

This change in the law does not prevent employers from securing MVR’s on their own, but does expose an employer to liability if certain procedures are not in place for the proper acquisition of such information.

What Users Should Know About the FCRA and MVR’s

Q: What is the Fair Credit Reporting Act?
The FCRA was enacted in 1970 to protect the privacy of consumers’ credit information and to assure that the information is as accurate as possible. The Act applies only to information about individuals. Information about entities, such as corporations and partnerships, is not regulated by the Act.

Q: Can MVR’s still be requested on employees?
Yes, but only for certain users with a specific purpose such as employment screening. Appendix C to Part 601 outlines those requirements.

Here is part of that section:


Users Must Have a Permissible Purpose
Congress has limited the use of consumer reports to protect consumers’ privacy All users must have a permissible purpose under the FCRA to obtain a consumer report.

Section 604 of the FCRA contains a list of the permissible purposes under the law. These are:

As ordered by a court or a federal grand jury subpoena.
Section 604(a)(1)

As instructed by the consumer in writing. Section 604(a)(2)

For employment purposes, including hiring and promotion decisions, where the consumer has given written permission.
Section 604(a)(3)(B) and 604(b)

For the underwriting of insurance as a result of an application from a consumer. Section 604(a)(3)(C)

Q: Can a user of the MVR share the contents?
The user is not permitted to share the MVR with anyone. Appendix C to Part 601(1)(B) states:


Section 604(f) of the FCRA prohibits any person from obtaining a consumer report from a consumer reporting agency (CRA) unless the person has certified to the CRA (by a general or specific certification, as appropriate) the permissible purpose(s) for which the report is being obtained and certifies that the report will not be used for any other purposes.

Q: What happens if I don’t follow the procedures as outlined in the FCRA?
The penalties are severe. Appendix C to Part 601(7) states:


Failure to comply with the FCRA can result in stste or federal enforcement actions, as well as private lawsuits; Sections 626, 617, and 621.

In addition, any person who knowingly and willfully obtains a consumer report uner false pretenses may face criminal prosecution. Section 619.

Q: Where can I learn more about my responsibilities regarding the FCRA?
The FCRA, 156 U.S.C. 1681-1681u, is set forth in full at the Federal Trade Commission’s Internet website (http://www.ftclgov).

Please remember that your Garage Liability insurance policy may not provide coverage for employment related claims such as wrongful termination or discrimination or such coverage may not be adequate.

Additional Protection can be provided with an Employment Practices Liability Insurance policy (EPLI) which you should discuss with your agent.

Should you have additional questions, we recommend you consult your attorney.