LLQP Life Insurance · Component 3.1 · 25% of the exam
The role of the Medical Information Bureau (MIB) in underwriting is to:
- AProvide the applicant's full medical file to any insurer that requests it, with the applicant's consent
- BSet the premium rates that member insurers charge for applicants with particular conditions
- CApprove or decline applications on behalf of member insurers, so that decisions are consistent across the industry
- Share coded information among member insurers about conditions previously reported, to detect omissions
Correct answer: D) Share coded information among member insurers about conditions previously reported, to detect omissions
MIB holds brief coded notes from prior applications, not medical records. If an applicant tells one insurer about a condition and omits it on the next application, the MIB code prompts the underwriter to investigate. Applicants consent to the MIB check when applying.
Why the other options are wrong
- AMIB holds coded notes, not full medical files.
- BMIB does not set rates.
- CMIB does not decide applications.
Exam tip
MIB codes flag inconsistencies between applications. Applicants consent to the check when they apply.
Common mistake
Describing MIB as a medical records database.
What this tests
CISRO competency component 3.1 — Implement a recommendation adapted to the client's needs and situation — which is weighted at 25% of the Life Insurance module. Written against the published curriculum.
More from component 3
- At policy delivery, the agent should obtain:
- The effective date of a life insurance policy is generally:
- A client's application is approved but he has not paid the first premium when the policy is delivered. The agent should:
- A pre-authorized debit form is part of implementation because:
- During implementation, the agent learns the client wants the policy owned by her corporation instead of personally, as first applied for. The correct step is:
- Which of the following is a legitimate reason an insurer might refuse to issue a policy even after favourable underwriting?
Practice the whole Life Insurance module
Timed sets weighted like the exam, and review of every question you miss. Free to start.