General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
During the underwriting of a health application, the insurer receives a Medical Information Bureau (MIB) report. Which statement about the MIB report is correct?
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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 data exchange among life and health insurers. When an applicant's MIB record shows coded information from earlier insurance applications that differs from the current application, the report flags the discrepancy and prompts the underwriter to investigate further — for example, by requesting an attending physician statement or additional tests. The MIB is a red-flag system, not a medical record source, and it is subject to strict confidentiality rules.
Why the other options are wrong
- B) The MIB contains coded information from prior insurance applications, not the applicant's complete medical records.
- C) The MIB does not replace the attending physician statement; the APS is a separate underwriting tool obtained when medical history needs verification.
- D) Credit and driving records come from consumer reporting agencies and DMV reports, not the MIB.
Memory hook
MIB is the red flag, not the record. Discrepancies point; the physician's statement proves.