What is the main purpose of the Medical Information Bureau (MIB) in life insurance?

The main purpose of the Medical Information Bureau (MIB) in the context of life insurance is to share medical information to help insurers detect potential fraud and risk. The MIB maintains a database that includes medical information about consumers who have applied for life and health insurance. When an individual applies for insurance, underwriters can access this data to verify the accuracy of the information provided by the applicant. This helps insurers assess risk more effectively and minimizes the likelihood of fraudulent claims.

By facilitating the sharing of medical records among different insurance companies, the MIB plays a crucial role in ensuring that insurers have a reliable source of information when evaluating an applicant's risk profile. This not only helps protect the insurer but also supports the integrity of the insurance process as a whole.