Which statement about the MIB is true?

• A. It regulates insurance rates
• B. It issues policy forms
• C. It helps underwriters evaluate risk
• D. It pays claims to insureds

Answer: (C)

The main idea is that the MIB provides underwriting with medical information to assess risk. The Medical Information Bureau collects and shares an applicant’s health history among member insurers, helping underwriters verify what the applicant has disclosed and identify any undisclosed conditions that could affect insurability. This makes underwriting decisions more accurate and consistent.

The MIB doesn’t regulate insurance rates, so it doesn’t set prices. It also doesn’t issue policy forms—those are created by insurers and filed with state regulators. And it doesn’t pay claims—claims are paid by the insurer when a policy is in force.