The Medical Information Bureau (MIB) is primarily 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 database of coded medical information submitted by member life insurers. When an applicant has had a condition reported by another member insurer, the MIB report alerts the underwriter so that the insurer can investigate further, for example by requesting an attending physician statement or a medical exam. The MIB does not make underwriting decisions, does not set rates, and does not contain the applicant's complete medical record. It serves as a detection and verification tool in the underwriting process. The applicant must be notified that information may be reported to the MIB.
Why the other options are wrong
- The insurer's underwriter makes the coverage decision based on all available information; the MIB only flags possible impairments for investigation.
- Rates are set by the insurer's pricing and actuarial process based on mortality and expenses, not by the MIB.
- A completed application is still required in every case; the MIB report supplements, but never replaces, the application.
Memory hook
MIB = the tip line: 'check this applicant's history again,' not the verdict.