What is the purpose of the Medical Information Bureau (MIB)?

• A. To administer claims
• B. To help underwriters evaluate risk
• C. To file lawsuits against insurers
• D. To appoint agents

Answer: (B)

The main idea is that the MIB exists to support underwriting by sharing medical impairment information among member insurers so they can accurately assess risk and verify an applicant’s health history. Underwriters rely on this information to confirm what the applicant has disclosed and to uncover any omissions or misrepresentations, which helps them determine insurability and set appropriate premiums. The MIB is not involved in administering claims, filing lawsuits, or appointing agents, so those activities aren’t its purpose. It’s a confidential database used by life and health insurers to streamline and standardize the underwriting process, ensuring decisions reflect true health risks.