Life Insurance FundamentalsQuestion 133 of 315
What is the primary purpose of the Medical Information Bureau (MIB) report in life underwriting?
a.To deliver the applicant's complete hospital records
b.To flag information disclosed by the applicant on prior insurance applications
c.To verify employment income and tax returns
d.To run a credit score and approve a policy loan
Explanation
The MIB is a clearinghouse of coded information that member insurers share to detect misrepresentation. It flags disclosures from prior applications, prompting the underwriter to investigate further. The applicant must be told MIB will be consulted.
Law Reference: Fair Credit Reporting Act; Cal. Ins. Code §791 et seq.Practice all 315 questions free — no signup required.
Related questions on this topic
- Which three factors are used by actuaries to calculate the gross premium of a life insurance policy?
- All else equal, which premium-payment mode produces the highest total annual outlay for a policyowner?
- An applicant has well-controlled high blood pressure and is otherwise healthy. The underwriter accepts the application but adds a flat extra premium for the cardiovascular risk. The applicant has been placed in which risk class?
- Marco buys a $500,000 life insurance policy on his spouse. They divorce three years later, and Marco continues paying premiums. When his ex-spouse dies four years after the divorce, can Marco still collect?
- Stranger-Originated Life Insurance (STOLI) is best described as:
- Two business partners want to make sure that when one dies, the surviving partner can buy out the deceased's share and the family receives cash. Each partner owns a life policy on the OTHER partner. This is a:
Last reviewed: · editorial process
Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)