Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
The Medical Information Bureau (MIB) is used by life insurers to:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The MIB is a confidential database maintained by an association of insurers. Member companies report coded information about applicants' health conditions and adverse findings, and other members can query it during underwriting to identify discrepancies between the current application and prior reports. This helps detect fraud and misrepresentation. Applicants must be notified of MIB reporting and may access their own MIB file.
Why the other options are wrong
- B) Premiums are set by each insurer's actuaries based on its own experience; the MIB does not set rates.
- C) Agent licensing is the function of the state insurance department, not the MIB.
- D) The MIB supplements underwriting evidence; it does not eliminate the need for medical underwriting.
Memory hook
MIB = the industry's coded memory about your medical file. It flags discrepancies; underwriters do the rest.