General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
To verify an applicant's medical history during underwriting, many life and health insurers obtain a coded report from a nonprofit clearinghouse of medical information submitted by member insurers. This organization is the:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Medical Information Bureau (MIB) is a nonprofit association whose member insurers share coded information about applicants' medical conditions and hazardous activities reported on previous applications. The insurer uses an MIB report to verify statements on the current application and to alert underwriters to facts that need investigation. The applicant has rights to obtain and correct MIB information. MIB reports are an evidence-gathering tool, not the final underwriting decision.
Why the other options are wrong
- B) A state department of health services administers public health programs; it is a government agency, not a medical information clearinghouse.
- C) CMS administers federal Medicare and Medicaid programs; it does not compile applicant medical histories for underwriting.
- D) The Workers' Compensation Appeals Board adjudicates state workers' compensation disputes; it has no underwriting information role.
Memory hook
MIB = the member insurers' shared filing cabinet of applicant medical codes.