| We at I&E also choose to work with many different life insurance companies so that if we encounter a client who may not be eligible for coverage with one company, we can always turn to another top-rated life insurance company that may be a better fit. Show
For most kinds of life insurance applications, the life insurance company will collect and evaluate a ton of information about you. Although insurance companies have a lot of information from the application and, often, a life insurance medical exam, they also often tap resources for extra data, such as the MIB Group. Who is the MIB Group?Operating in the U.S. and Canada since 1902, the MIB Group is a member-owned corporation that provides underwriting services to life and health insurance companies. MIB’s services help insurers gather information about a person’s risk and eligibility for life, disability, health and long-term care insurance policies. Insurance companies (the members) contribute underwriting information to MIB’s database that might help all member insurers prevent fraud, assess risks and calculate insurance rates. Essentially, MIB’s database is an information exchange among insurance companies. Information Collected by the MIB GroupTo protect privacy, all information about people is stored in a coded format and is only accessible to members authorized to use MIB’s database. The information collected can impact whether you’re offered coverage and what the rate will be. This information can go back seven years and includes:
The MIB Group doesn’t collect policy denial or approval information from insurance companies. How Insurance Companies Use MIB Data for Life Insurance ApplicationsLife insurance companies determine rates based on the amount of risk they think the applicant has, such as a person’s life expectancy. MIB data can come in handy for insurance companies in several ways. Verifying application data. Insurers use MIB data as a guide to verify the information they receive on an application jives with other applications submitted over the past seven years. MIB’s data helps insurance companies identify possible errors, omissions and misrepresentations on an application. While MIB plays a role in assessing an applicant’s risk, insurance companies complete their own underwriting process to establish rates. They don’t use MIB data alone. Investigating discrepancies. Suppose the information from a MIB report is inconsistent with the information on a life insurance application. In that case, the insurance company may take a deeper dive into your medical history or other conditions before making an approval decision. “Say the client lists Dr. John Doe as his primary doctor and says he sees no other doctors. However, the MIB suggests a psychiatric history, yet Dr. Doe’s records have absolutely no information about this. In this case, the carrier seeks additional code details,” says Gordon E. Conwell, a Higher Risk Life Insurance Specialist at American Term. In other words, the insurance company reviewing this information could reach out directly to the other insurance company that coded the psychiatric history. The original insurance company can advise the new insurer on where to seek the psychiatric records. Increasing the efficiency and accuracy of the application process. Because MIB gives insurance companies data points that flag fraud and inconsistencies, insurers can make faster and more accurate decisions on applications that don’t raise any red flags. “MIB data is increasing the efficiency of the life insurance application process. Since information is readily accessible, it minimizes the underwriting time and helps provide accurate life insurance quotes for consumers,” says Jackie Morales, Chief Insurance Officer at Bestow, a life insurance company. Additionally, accurate information helps the insurance companies keep costs in check, which is beneficial to both consumers and insurers How to Get Your Own MIB ReportWhether you’ve applied for life insurance in the past or are considering applying for a new policy, you may be wondering about your own MIB report. If so, you can request your MIB Underwriting Services Consumer File online or by phone. Once you provide a few personal details to verify your identity, MIB will send your free file. It can contain information including:
You won’t have a MIB report if you haven’t applied for individual life or health insurance in the last seven years, or other types of individual insurance. For example, supplemental life insurance that you buy through work won’t be in a MIB file. How to Dispute Errors on a MIB ReportWhile it’s possible to dispute a claim, the MIB says that only 1% to 2% of customer files are amended due to a mistake. Under the federal MIB offers a reinvestigation process if you think the file’s information is inaccurate or incomplete. You can request a free reinvestigation by contacting the MIB Disclosure Office. MIB will look into the accuracy of the information in your file and send you their results via mail within 45 days. Here’s more on the information that life insurers collect about you. More From Advisor
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc. What is the purpose for MIB?MIB, formerly known as the Medical Information Bureau, is a company that insurers use to look at the health history of potential customers. MIB keeps a database of things that may affect whether or not you can get insurance. Members can see your health conditions and other details using MIB services.
Why was MIB created?Previously known as the Medical Information Bureau, the organization was created in 1902 to provide fraud protection services to insurance companies. MIB maintains a confidential consumer database that is accessible only by its member companies.
What is MIB used for insurance?Previously known as the Medical Information Bureau, the MIB is a resource for insurance underwriters to assess risk and evaluate life insurance applications.
What information does the MIB have?It can contain information including: Medical and personal information and the name of the MIB member company reported the information and the report's date. Any insurance company that made an inquiry or received a copy of your file. Information reported to the MIB's Disability Insurance Record System.
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