Mib Reporting: Life Insurance Turn Downs

The Medical Information Bureau (MIB) is a database that member life insurance companies use to create files on new applicants and code any health issues pertinent to the underwriting of an insurance case. The MIB does not make decisions on insurability based solely on the report. However, it helps insurance companies verify information on applications and identify possible errors, omissions, and misrepresentations. This enables insurers to charge rates that adequately reflect an applicant's mortality risk, keeping premiums affordable for consumers. While MIB data can impact the approval of an application and insurance rates, it is only one of many pieces of information used by insurance companies during the underwriting process.

The MIB's role in the life insurance underwriting process

The Medical Information Bureau (MIB) is a member-owned corporation that has been operating in the U.S. and Canada since 1902. It acts as a "nationwide specialty consumer reporting agency" under the federal Fair Credit Reporting Act (FCRA) and provides consumer reports to insurance companies during the underwriting process.

The MIB maintains a database of confidential information, safeguarded in a coded format, about underwriting risks such as medical conditions, hazardous hobbies, and unfavourable driving records, which can adversely affect a person's insurability. This information is collected with the applicant's permission and is used to alert insurance underwriters to potential errors, omissions, or misrepresentations in the application.

By maintaining this information and alerting companies to potential red flags, the MIB helps insurers avoid covering individuals who pose an increased risk. It also helps insurers charge the proper risk class for those who are insurable but not in good health. This enables insurers to keep prices affordable and reward those eligible for preferred rates.

The MIB does not collect or store any information from medical exams, lab test results, or reasons for denial of insurance. Instead, codes are provided by its members about significant risks to the underwriting process. These codes are like encryption and are used to signify different medical conditions that affect a person's insurability.

The MIB is directly regulated by the FCRA, which promotes accuracy, privacy, and fairness among consumer reporting agencies. MIB is also subject to other laws that it must comply with to allow its members to use its services. It must maintain a secure and confidential database for the sole use of its members.

Individuals can request a copy of their MIB record by calling or completing an online request. They will need to provide some personally identifying information and certify that the provided information is accurate. The MIB will then translate all the codes into understandable information and send the file within 15 days.

In summary, the MIB plays a crucial role in the life insurance underwriting process by providing insurers with access to shared medical information about applicants. This helps insurers assess the risk associated with an applicant's health history and make informed underwriting decisions.

How the MIB helps consumers

The MIB, or Medical Information Bureau, helps consumers in several ways.

Firstly, it aids in keeping insurance rates affordable. The MIB helps insurance companies avoid insuring individuals who pose an increased risk, and it also helps them charge appropriate rates for those who are insurable but not in good health. By mitigating these unwanted risks, insurers can keep prices affordable and reward those eligible for preferred rates.

Secondly, the MIB helps to ensure accuracy and fairness in the insurance application process. Insurance companies use the MIB database to verify the information provided by applicants, helping them to identify possible errors, omissions, and misrepresentations on applications. This allows insurers to make faster and more accurate decisions on applications that don't raise any red flags, increasing the efficiency of the application process.

Thirdly, the MIB helps to protect consumers' privacy and the security of their personal information. All information about individuals is stored in a coded format, protecting the privacy of the individual. The MIB also implements robust security standards and policies to safeguard any individually identifiable information in its database.

Finally, the MIB provides consumers with the right to obtain their MIB file and dispute any inaccuracies or incompleteness. Consumers can request their MIB file free of charge once a year, and the MIB offers a reinvestigation process if consumers believe the information in their file is inaccurate or incomplete.

What the MIB does with your information

The MIB, or Medical Information Bureau, is a not-for-profit organisation that provides consumer reports for the exclusive use of insurance companies. These reports help insurers to charge and classify applicants based on mortality risk, and to keep rates affordable.

The MIB maintains a database of confidential information, safeguarded in a coded format, about underwriting risks such as medical conditions, hazardous hobbies, and unfavourable driving records, which can adversely affect a person's insurability. This information is collected with the permission of the individual.

The MIB does not collect or store any information from medical exams, lab test results, or reasons for denial of insurance. Instead, codes are provided by its members about significant risks to the underwriting process. These codes are like encryption and are used to signify different medical conditions that affect a person's insurability. For example, if an individual had a stroke and reported it on an application, a carrier may report it to the MIB, and it will be coded as a stroke but without any test results or doctor's records.

The MIB will only release information to its members after receiving signed authorisation from the individual. Individuals can also request a copy of their MIB record by calling or completing an online request. This file is provided free of charge and will be sent within 15 days. The MIB will translate all the codes into something the individual can understand, along with the names of companies that made an inquiry in the last 24 months and a list of members that received the file in the previous 36 months.

The MIB is directly regulated by the federal Fair Credit Reporting Act ("FCRA"), which promotes accuracy, privacy, and fairness among consumer reporting agencies. The MIB must also comply with many other laws, including the Health Insurance Portability and Accountability Act ("HIPAA"), to allow its members to use its services.

How to dispute an incorrect MIB report

The Medical Information Bureau (MIB) is a non-profit organisation that collects and maintains information on insurance applicants. It was founded in 1902 and functions as a "nationwide specialty consumer reporting agency".

If you believe there is incorrect information in your MIB report, you can dispute it. Here is a step-by-step guide on how to do so:

Step 1: Request Your MIB Report

You can request your MIB report by calling the MIB directly at 1-866-692-6901 or by completing an online request. You are entitled to one free report annually. This report will be provided to you within 15 days.

Step 2: Identify Inaccuracies

Review your MIB report thoroughly. Identify any information that you believe is inaccurate or incomplete. Make note of these items, as you will need to specify them in your dispute.

Step 3: Gather Supporting Documentation

Obtain any relevant medical records, lab test results, or treatment records that support your claim of inaccuracy. These documents can be sent to the MIB Disclosure Office at 50 Braintree Hill Park, Suite 400, Braintree, MA 02184. Alternatively, you can provide the name, address, and contact information for any healthcare providers who may have additional relevant information.

Step 4: Initiate a Reinvestigation

To initiate a reinvestigation of your MIB report, you must submit a signed Request for Reinvestigation Form or a signed letter. This can be done by email ([email protected]) or by mail to the MIB Disclosure Office. There is no charge for submitting a dispute.

In your request, be sure to include the following information:

• Your full name, including middle initial and any name suffix
• Your Social Security Number or Social Identification Number
• A list of each item on your MIB report that you believe to be inaccurate or incomplete, along with specific reasons for your dispute
• Any supporting documentation or contact information for relevant healthcare providers

Step 5: Await Results

The reinvestigation process may take up to 45 days. Once the process is complete, the MIB will send you the results by mail. If your dispute is substantiated, the MIB will amend your report accordingly.

The MIB's history and function

The MIB, or Medical Information Bureau, is a membership corporation owned by approximately 430 member insurance companies in the US and Canada. It was formed in 1902 and is based in Braintree, Massachusetts. The MIB provides services designed to protect insurers, policyholders, and applicants from attempts to conceal or omit information material to underwriting life and health insurance. The MIB functions as a “nationwide specialty consumer reporting agency” under the federal Fair Credit Reporting Act (FCRA) as it provides consumer reports to its members (insurance companies) during the underwriting process.

The MIB maintains a database of confidential information, safeguarded in a coded format, about underwriting risks such as medical conditions, hazardous hobbies, and unfavourable driving records, which can adversely impact one's insurability. This information is collected with the applicant's permission and helps alert insurance underwriters to potential errors, omissions, or misrepresentations that were collected during a phone interview, the medical exam, or answers on the application.

By maintaining this information and alerting companies to potential red flags, the MIB helps insurers avoid taking on individuals who pose an increased risk and charge appropriate rates for those who are insurable but not in good health. This helps insurers keep prices affordable and reward those eligible for preferred rates.

The MIB does not collect or store any information from medical exams, lab test results, or reasons for denial of insurance. Instead, codes are provided by its members about significant risks to the underwriting process. These codes are similar to encryption and are used to signify different medical conditions that affect one's insurability.

The MIB is directly regulated under the FCRA, which promotes accuracy, privacy, and fairness among consumer reporting agencies. MIB must also comply with other laws, including HIPAA, to maintain a secure and confidential database.

Frequently asked questions