Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
The Medical Information Bureau (MIB) is best described as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The MIB is a not-for-profit clearinghouse of coded medical and personal information shared among member life and health insurers. When an applicant's information indicates a condition, member insurers submit codes that alert other members to areas worth investigating — the MIB flags, not decides, and it does not make underwriting decisions. Applicants must be told that information is being reported to the MIB and can request disclosure of their file. It is not a regulator or rate-setter, does not issue policies, and does not perform lab work.
Why the other options are wrong
- B) The MIB does not regulate insurers or set premium rates. It is a nonprofit information exchange among member life and health insurers.
- C) The MIB issues no policies. It exchanges coded underwriting information that alerts member insurers to areas worth investigating.
- D) Laboratory testing is performed by clinical testing services. The MIB is a clearinghouse of reported information, not a testing laboratory.
Memory hook
MIB is the industry's shared notebook — it flags what to check, not who to insure.