
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, June 22, 1995                   TAG: 9507180106
SECTION: BUSINESS                    PAGE: B8   EDITION: METRO 
SOURCE: 
DATELINE: WASHINGTON                                 LENGTH: Short

DISCLOSURE RULES APPLIED TO INSURANCE

Consumers seeking insurance will be told when information from a reporting agency was used in the decision to deny coverage or increase rates.

Under an agreement between the Federal Trade Commission and MIB Inc., the nation's principal consumer insurance reporting agency, insurers also must give applicants the name and address of the agency providing the report.

Consumers also must be told that they are entitled to a free copy of the report, if they request one within 30 days, to verify the information. The new policy takes effect on Oct. 2.

An FTC official said Wednesday the changes will bring MIB's 700 member companies into compliance with the Fair Credit Reporting Act, which protects consumers from unfair treatment in credit and employment investigations.

The FTC said MIB's members write 99 percent of the individual life insurance policies and 80 percent of all health and disability policies issued in the United States and Canada.

Associated Press

by CNB