South Carolina Life Insurance Practice Exam

What is the primary purpose of the Medical Information Bureau?

1. To provide claims support

2. To share medical history among insurers

3. To evaluate broker performance

4. To manage policyholder information

The correct answer is: To share medical history among insurers

The primary purpose of the Medical Information Bureau (MIB) is to share medical history among insurers. The MIB plays a crucial role in the insurance industry by collecting and maintaining information on individuals' medical conditions, treatments, and health history. This information is used by underwriters across member insurance companies to assess risk more accurately when evaluating applications for life and health insurance coverage. By sharing this data, the bureau helps insurance companies make informed decisions, reduce fraud, and ensure that applicants are treated fairly and consistently based on their disclosed medical information. Other options, while related to insurance processes, do not accurately capture the MIB's main function. For instance, managing policyholder information is typically handled by the insurance companies themselves, not by the MIB. Similarly, the MIB does not directly provide claims support or evaluate broker performance but focuses exclusively on sharing medical histories to aid in underwriting decisions.