What law requires that an insurance application disclose the possibility of an investigative consumer report being obtained on an applicant?

The Fair Credit Reporting Act is the correct answer because this federal law was designed to promote accuracy, fairness, and privacy in the information collected by credit reporting agencies. It requires that consumers be informed if a consumer report, which can include an investigative consumer report, is going to be obtained for underwriting insurance applications or any other specific purpose.

Under this Act, if an insurance company intends to use information from a consumer report when making decisions about coverage, the applicant must be notified, and they must also be given an opportunity to understand the nature of the report and how it will be used. This ensures transparency and protects consumers' rights regarding their personal information.

The other laws mentioned do not specifically govern the disclosure of investigative consumer reports in the context of insurance applications. The Health Insurance Portability and Accountability Act primarily deals with the privacy of healthcare information, while the Insurance Information and Privacy Protection Act relates to the collection of personal information in the insurance industry without addressing consumer report disclosures. The Public Records Act pertains to the accessibility of public records and is not focused on the regulation of consumer reporting in the insurance context.