General Insurance PrinciplesQuestion 582 of 716
In using MIB data, an insurer may NOT:
a.Use an MIB report as a starting point for further investigation
b.Ask the applicant health questions on the application
c.Decline or rate an applicant solely on the basis of an MIB report without additional underwriting
d.Report its own coded underwriting findings back to the MIB so other member companies can review them later
Explanation
MIB information is only a lead; an insurer cannot base an adverse decision on the MIB report alone and must independently underwrite. Using it as a starting point, contributing coded findings, and asking health questions are all permitted.
This topic, taught in full in the California Life & Health Insurance Producer Exam guide. California Life & Health Insurance Producer Exam — Complete Study Guide (2026) — PDF + EPUB, $19.99 · 14-day refund →
Practice all 716 questions free — no signup required.
Own the complete California Life & Health Insurance Producer Exam guide — PDF + EPUB, $19.99 →
Related questions on this topic
- Insurers combat adverse selection primarily through:
- The producer's role in field underwriting includes:
- The Medical Information Bureau (MIB) assists insurers by:
- Under the Fair Credit Reporting Act (FCRA), when an insurer obtains a consumer or investigative report on an applicant, the applicant:
- If an insurer takes adverse action (declines or rates coverage) based on a consumer report, the FCRA requires the insurer to:
- An investigative consumer report differs from an ordinary consumer report because it:
Last reviewed: · editorial process
PrepPass team · 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)