Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
What role does the Medical Information Bureau (MIB) play in the life insurance underwriting process?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Medical Information Bureau is a confidential, nonprofit information exchange among member life insurance companies. When an insurer reports an applicant's serious health impairments or hazardous practices, the MIB codes are shared so that other member insurers are alerted to investigate further. An MIB report never makes the underwriting decision by itself; it simply flags information that the insurer must verify through its own evidence, and the applicant is entitled to a copy under disclosure rules.
Why the other options are wrong
- B) The MIB does not make underwriting decisions; the insurer's underwriter decides based on its own evaluation.
- C) The MIB is a private member-run exchange, not a government agency, and it does not approve rates.
- D) Credit reports are obtained from consumer reporting agencies separately; the MIB deals with medical and health information.
Memory hook
MIB is the insurance industry's shared memory about health flags, not the judge. The insurer still does its own homework.