What Is The MIB And How Does It Affect You?

MIB

What Is The MIB And How Does It Affect You?

The medical Information Bureau is a company based in Massachusetts that maintains a database of extensive medical information to help underwriters determine if a client qualifies for life insurance or health insurance. If an applicant applies for life insurance and there are any discrepancies between the answers a client has given on an application, the underwriter may ask for additional information, or may decline the application based on the data received from the MIB.  In addition to a client's medical information, the MIB also keeps record of the number of times a request has been made. Insurance companies want to ensure that when issuing a policy, the client fits the risk class they have applied for. This helps keep premiums in line with the risk taken by the insurer.

Fraud

The MIB is also able to help determine fraud. If there are an abnormal number of requests from the MIB, it could alert the company to a "murder for profit" scheme. If there are many requests coming through on many small applications or a few large applications, it alerts them to a possible scheme. If they feel this is happening, at that point they would contact the authorities. It will also give insurers information as to the risk class an applicant may have been given by another insurer and if a consumer attempts to falsify information on an application, it would immediately be caught on an MIB report. Based off this is false information, the application may be declined or the insured may be offered the same risk class.

Can I view my report?

Yes. It is possible that the information on a report was reported erroneously. An insured has the right to view what is on his/her MIB report. You can submit written notice to the MIB or call them and get a free copy of what has been reported. All declines on a policy will trigger a disclosure to the applicant with the necessary information to obtain a copy.

Ultimately, the MIB is able to ensure that risk-based premiums remain in-line with the risks taken by an insurance company and allows insurers to meet the financial obligations to their policy holders.

Contact our office today, to schedule an appointment to meet with one of our agents to determine what life insurance products you may qualify for.