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

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

• A. To help underwriters evaluate risk
• B. To provide insurance policy templates
• C. To offer legal advice to insurers
• D. To track insurance claims only

Answer: (A)

The Medical Information Bureau (MIB) plays a crucial role in the insurance industry by assisting underwriters in evaluating the risk associated with potential policyholders. The MIB collects and maintains medical and non-medical information about consumers who apply for insurance, which underwriters can access during the underwriting process. This helps them to assess the applicant's health history and determine the likelihood of future claims, ultimately allowing for more accurate risk assessment and pricing of insurance policies. The MIB’s database includes information that can highlight past medical conditions, lifestyle choices, and other relevant factors which may affect an individual's insurance risk. This comprehensive approach enables insurers to make informed decisions when issuing policies, ensuring adequate coverage while managing their financial exposure.

The Medical Information Bureau (MIB) plays a crucial role in the insurance industry by assisting underwriters in evaluating the risk associated with potential policyholders. The MIB collects and maintains medical and non-medical information about consumers who apply for insurance, which underwriters can access during the underwriting process. This helps them to assess the applicant's health history and determine the likelihood of future claims, ultimately allowing for more accurate risk assessment and pricing of insurance policies.

The MIB’s database includes information that can highlight past medical conditions, lifestyle choices, and other relevant factors which may affect an individual's insurance risk. This comprehensive approach enables insurers to make informed decisions when issuing policies, ensuring adequate coverage while managing their financial exposure.