Life Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which statement about the Medical Information Bureau (MIB) is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The Medical Information Bureau is a nonprofit clearinghouse. Member life insurers report coded medical information about their applicants and consult the database during underwriting to detect inconsistencies or undisclosed conditions. Applicants have the right to know what is in their MIB file and to correct errors, and the insurer must advise the applicant when an MIB report is requested. The MIB does not license agents, set rates, or pay claims.
Why the other options are wrong
- A) Agent licensing is administered by the state Department of Insurance, not by the MIB.
- B) Premium rates are set by individual insurers using their own assumptions and experience, not by the MIB.
- C) Death claims are paid by the insurer under the policy, not by the MIB.
Memory hook
MIB = the industry's shared memory of medical red flags that underwriting consults.