If you’re considering applying for life insurance, it’s important to have a basic understanding of the organizations and resources involved in the process, including the Medical Information Bureau (MIB). The formerly-named Medical Information Bureau, now known simply as the MIB Group or MIB, is a resource used by life insurance companies to evaluate risk and prevent fraud during the underwriting process.
The MIB consists of over 800 life insurance companies in the US and Canada and maintains a database of underwriting information. Overall, the MIB helps insurance companies set accurate premiums and combat fraud. In this article, we’ll explore what information is included in an MIB report and how it’s used during the life insurance application process.
What information is included in a MIB report?
An MIB report provides insurance companies with details about your most recent life insurance applications from the last three to five years. These reports provide information about:
Previous life insurance applications
Dates of diagnosis or treatment for illnesses
Known medical conditions
Types of medical treatment
The source of the medical history
It may also include information about benefits applied for/current coverage for disability income insurance. MIB reports do not contain complete details about a person's medical condition but instead include information significant to the underwriting process. This medical information is coded and protected under HIPAA regulations.
Individuals have the right to request access to their MIB report for free and dispute any inaccuracies found in the report. This means that if you’ve applied for or received life insurance, you can request a copy of your MIB report to review and keep for your records. An MIB report is not the only resource underwriters use. Underwriters may rely on the MIB report in conjunction with a medical exam, a prescription check, and doctors’ statements to ensure your life insurance application contains all of your relevant health information.
How Insurance Companies Use MIB Reports for Life Insurance Applications
Life insurance companies may use a variety of tools and materials throughout the application and underwriting process to consider the risk associated with insuring an applicant. For example, carriers use MIB reports as a resource to evaluate risk and prevent fraud during underwriting. These reports provide valuable information about an applicant’s medical history, previous life insurance applications, dates of diagnosis or treatment for illnesses, known medical conditions, types of treatment, and the source of the medical history.
By reviewing the MIB report, life insurance companies can assess an individual's risk and eligibility for insurance policies. This helps underwriters determine a policy’s premiums accurately and fairly so they offer life insurance rates to individuals according to the same criteria.
SelectQuote Can Answer Your Questions About MIB Reports and Life Insurance
During the life insurance application process, you will likely have questions about how carriers and underwriters use your information. Fortunately, we’re here to help. SelectQuote can help you understand the purpose of MIB reports and their impact on life insurance applications.
We have nearly 40 years of industry experience, so our licensed insurance agents are equipped with the knowledge and training needed to guide you through the process so you can feel informed and confident each step of the way.
