Life & Health Insurance Exam (National Portion)Underwriting and Policy IssueHard
Which of the following describes the primary purpose of the Medical Information Bureau (MIB) in the underwriting process?
- ATo conduct physical examinations and laboratory tests for applicants.
- BTo help insurers detect fraud and misrepresentation by sharing coded information on past health conditions.
- CTo provide detailed medical diagnoses and treatment plans for applicants.
- DTo serve as a clearinghouse for genetic test results to assess future health risks.
Show answer & explanationAnswer & explanation
Correct answer: B. To help insurers detect fraud and misrepresentation by sharing coded information on past health conditions.
The MIB is a non-profit association that maintains a database of coded information about individuals' past health conditions. Its primary purpose is to assist insurers in preventing fraud and misrepresentation by cross-referencing information provided by applicants with what other insurers have reported.
Why the other options are wrong
- A. The MIB does not perform medical exams or lab tests; it's a data repository.
- C. The MIB provides coded alerts, not detailed medical records or treatment plans; that comes from an APS.
- D. The MIB does not collect or share genetic test results due to privacy concerns and regulatory restrictions.
Medical Information Bureau (MIB)
A non-profit association that collects and shares coded medical information among member insurance companies to help detect and prevent fraud and misrepresentation by applicants.
- Fraud prevention tool
- Shares coded health information (not actual medical records)
- Requires applicant authorization for access
Memory trick: MIB: 'M'isrepresentation 'I's 'B'usted!