Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
During life insurance underwriting, the Medical Information Bureau (MIB) is used by 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 not-for-profit association of life insurers that maintains coded medical information gathered from member insurers' applications. When an applicant applies for coverage, the insurer may query the MIB to detect discrepancies or undisclosed medical conditions, and the coded report helps the underwriter evaluate the risk. The MIB does not provide tax returns or credit scores, and it does not guarantee insurability. Applicants must be told when an MIB report is requested, and they have a right to see and correct the information.
Why the other options are wrong
- B) Tax returns are not part of MIB records; the MIB stores coded medical-history information only.
- C) MIB reports are one underwriting tool; they do not make an applicant automatically insurable.
- D) Credit reports are obtained from credit bureaus, not from the MIB, which is medical-history focused.
Memory hook
MIB = the insurers' shared memory of coded medical history, used to catch what is hidden.