Insurers Must Share Critical Reports

Rules that take effect in October will require insurance companies to tell consumers about information from reporting agencies that affects decisions about coverage and rates.

MIB Inc., the nation’s leading consumer insurance reporting agency, also will begin releasing to consumers the name and address of the entity supplying the information.

Consumers also will be told they are entitled to a free copy of the information within 30 days to check its accuracy.

A Federal Trade Commission official said the changes will help MIB’s 700 member companies comply with the Fair Credit Reporting Act, which protects consumers from unfair treatment in credit and employment investigations.

MIB has data on about 15 million people.

Jodie Bernstein, the FTC’s consumer protection chief, said the changes will extend more protections to consumers, more and more of whom are being forced to buy their own coverage as employers cut payrolls and trim benefits.

MIB provides its members with information on consumers, including credit history, medical conditions, driving records, criminal activity and participation in hazardous sports.

According to the FTC, 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.

FTC offers Fair Credit pamphlets

The Federal Trade Commission has produced several pamphlets for businesses and consumers.

In addition to a general one called “Fair Credit Reporting,” there is “How to Dispute Credit Report Errors,” aimed at consumers, and “Consumer Reports: What Insurers Should Know About Using Them,” aimed at business but available to consumers.

All are free and can be obtained by calling (202) 326-2222 or writing Federal Trade Commission Public Reference, Room 130, Sixth Street and Pennsylvania Avenue NW, Washington, D.C. 20580.

There also is an FTC “credit practices hot line” with recorded information about consumer rights: (202) 326-3758.

Ride Snowboard to split

Ride Snowboard Co., the Preston, Wash., marketer of snowboards and related products, Friday announced that its board of directors authorized a two-for-one stock split effective July 30, 1995.

Chairman Roger Madison said doubling the public float of the company’s stock to 3.6 million shares will increase their availability to potential investors.

Ride Snowboard went public in May 1994 and the shares took off like an avalanche, peaking at more than five times the offering price before slumping in recent weeks.

, DataTimes