Texas Life Agent Practice Exam

To whom may insurers report underwriting information provided by an applicant for Life insurance?

1. Consumer Financial Protection Bureau (CFPB)

2. Medical Information Bureau (MIB)

3. National Insurance Association

4. Life Insurance Advisory Board

The correct answer is: Medical Information Bureau (MIB)

Insurers may report underwriting information provided by an applicant for life insurance to the Medical Information Bureau (MIB). The MIB is an organization that serves as a central repository for health and lifestyle information related to individuals applying for life insurance. This organization aids insurers in managing risk by providing them with relevant medical and lifestyle data, thereby facilitating more informed underwriting decisions. When an applicant submits information during the application process, insurers may report that information to the MIB, which then retains it for future reference. This helps insurers confirm the accuracy of the information supplied by applicants and protect against fraudulent applications. Members of the MIB can access this data when underwriting new policies, ensuring consistency and accuracy across the insurance industry. The other choices, while related to insurance in some context, do not serve the specific function of reporting underwriting information as the MIB does. The Consumer Financial Protection Bureau primarily oversees financial regulations and consumer protection in various sectors, while the National Insurance Association and the Life Insurance Advisory Board do not have the same authoritative role in managing underwriting information for life insurance as the MIB.