Fair Credit Reporting Act (FCRA)
The federal law governing consumer report use in underwriting: insurers must notify applicants when consumer or investigative reports influence adverse decisions, and applicants may request disclosure.
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Practice This Concept
When an insurer requests a report from the Medical Information Bureau (MIB) during underwriting, the report is used primarily to:
Detect omissions or inconsistencies in the applicant's medical history across life insurance applications — The Medical Information Bureau (MIB) is an industry clearinghouse that codes and stores medical information reported by member insurers from previous life and health insurance applications. Underwriters request an MIB report to check for omissions or inconsistencies with the current application — for example, a condition disclosed on an earlier application but not on the current one. The MIB report does not diagnose or treat the applicant, does not replace the attending physician's statement (which is obtained separately when needed), and has no tax function. If an MIB report contributes to an adverse decision, the applicant must be notified.
National insurance concept
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