LLQP Life Insurance · Component 3.1 · 25% of the exam
Which statement about insurers' use of the Medical Information Bureau is correct?
- AThe applicant's consent is not needed, since MIB is an industry database that member insurers may consult whenever they choose
- BOnly declined applicants are reported to MIB, so an applicant who has never been declined will have no record
- The applicant authorizes the MIB check, and may request disclosure and correction of the record
- DMIB records contain full medical reports from every physician the applicant has consulted
Correct answer: C) The applicant authorizes the MIB check, and may request disclosure and correction of the record
Consent and access rights are built into the MIB system. Codes are brief and reflect conditions reported on prior applications, not outcomes; applicants can review and dispute their record.
Why the other options are wrong
- AConsent is obtained on the application.
- BReports reflect underwriting information, not only declines.
- DMIB holds codes, not reports.
Exam tip
MIB: consent on the application; applicants can see and correct their record.
Common mistake
Describing MIB as a blacklist of declined applicants.
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.