Rhode Island Life Insurance Practice Exam

What is the entity called that shares medical data among its member insurance companies?

1. Health Insurance Portability and Accountability Act (HIPAA)

2. Medical Information Bureau (MIB)

3. National Association of Insurance Commissioners (NAIC)

4. Society of Actuaries (SOA)

The correct answer is: Medical Information Bureau (MIB)

The Medical Information Bureau (MIB) is the correct answer because it serves as a critical organization that assists member insurance companies in sharing and accessing medical information about potential policyholders. This collaborative database enables insurers to make informed underwriting decisions by offering insights into applicants' medical histories, thereby helping to identify potential risks. Each member company contributes data regarding medical conditions, and when an individual applies for life insurance, the insurer can check the MIB database to see if relevant medical information has been reported. This helps prevent the possibility of fraud and ensures that underwriting processes are consistent across participating insurers. In contrast, the Health Insurance Portability and Accountability Act (HIPAA) primarily focuses on safeguarding patient privacy and health information rather than facilitating data sharing among insurers. The National Association of Insurance Commissioners (NAIC) is an organization that helps set standards in state insurance regulation but does not directly involve the sharing of medical data. Lastly, the Society of Actuaries (SOA) is a professional organization for actuaries that focuses on education and research within the actuarial profession, rather than on facilitating data sharing in the insurance industry.