What is a MIB report?
A Medical Information Bureau Report (or “MIB”) is the result of a life insurance reporting organization, which maintains a database about applicants who previously sought to buy life insurance, long-term care insurance, health insurance, and / or other related forms of coverage.
In addition to the information that is provided through an applicant’s medical exam itself, many life insurance companies will obtain additional medical related details through the Medical Information Bureau, Inc., or MIB Group.
MIB Group, Inc., is a member-owned corporation that has operated as a non-profit for more than 100 years in the U.S. and Canada. This entity’s underwriting services are used in assessing applicants’ risk and eligibility during the underwriting of life and health insurance policies.
Through using these services, insurance underwriters are alerted to errors, omissions, or misrepresentations that are made on insurance coverage applications. By mitigating the risk of applicant errors, omissions, or misrepresentations, the MIB can ultimately help in lowering the cost of life and health insurance coverage for consumers.
The information that is obtained from MIB Group, in conjunction with the application for coverage, the agent’s statement, and the medical report will typically provide life insurance underwriters with a sufficient amount of information so that a proper applicant selection and premium rate classification may be made.
The goal of the Medical Information Bureau is to ensure that insurers can offer – and that consumers can obtain – affordable life and health insurance coverage. This can help in maintaining a more equitable marketplace for insurance.
Please note: Not every applicant is in this database, but the member companies of MIB represent 99 percent of individual life insurance policies. They also account for 80 percent of all health and disability insurance policies throughout North America.
A person can receive his or her MIB report every year, as a result of the Fair Credit Reporting Act.
These reports enable insurers to properly categorize applicants, according to each person’s specific risk profile, thus saving member insurers an estimated $1 billion (or more) by accurately evaluating and categorizing risk.