California Life-Only & Accident and Health AgentLife InsuranceHard
An applicant is applying for a new life insurance policy. As part of the underwriting process, the insurer requests a report that summarizes the applicant's past insurance applications, including any adverse underwriting decisions. Which report is being requested?
- AAgent's Report
- BMedical Information Bureau (MIB) report
- CAttending Physician's Statement (APS)
- DConsumer Credit Report
Show answer & explanationAnswer & explanation
Correct answer: B. Medical Information Bureau (MIB) report
The Medical Information Bureau (MIB) is a non-profit organization that maintains a database of medical and avocational information on applicants for life and health insurance. Insurers use MIB reports to detect fraud and misrepresentation by comparing information on a new application with previous applications, including adverse underwriting decisions.
Why the other options are wrong
- A. An Agent's Report contains the agent's personal observations about the applicant and is part of the application, not an external report summarizing past applications.
- C. An Attending Physician's Statement (APS) is a detailed report from the applicant's doctor about their specific medical conditions and treatment.
- D. A Consumer Credit Report provides information about an applicant's financial responsibility and credit history, not medical or insurance application history.
Medical Information Bureau (MIB) Report
A report from a non-profit trade organization that maintains coded information about medical conditions and adverse underwriting decisions from previous insurance applications to help insurers detect fraud.
- Helps prevent fraud and misrepresentation.
- Contains coded information, not full medical records.
- Insurers must inform applicants that MIB reports may be used.
- Cannot be used to decline coverage solely based on the report; must be independently verified.
Memory trick: Application, APS, MIB, Credit, Exam: Underwriter's data dive.