MIB Group

Not to be confused with Motor Insurers' Bureau.
Mutual-benefit nonprofit corporation
Industry Life Insurance, Health Insurance
Founded 1902
Headquarters Braintree, Massachusetts, United States
Area served
 United States, Canada
Products MIB Cross Check, MIB Life Index
Services MIB Checking Service, Insurance Activity Index, Plan-F Follow-Up Service
Subsidiaries MIB, Inc., MIB Solutions, Inc.
Website

MIB Group, Inc (formerly The Medical Information Bureau, Inc.) is a membership corporation owned by approximately 500 member insurance companies in the United States and Canada. Formed in 1902 and based in Braintree, Massachusetts, MIB provides underwriting services designed to protect insurers, policyholders, and applicants from attempts to conceal or omit information material to insurance claims.

Mission and business model

MIB collects underwriting information from its member insurers that impact an individual's health or longevity. An MIB report serves as an "alert" to an insurer processing a claim though an actual underwriting action cannot be taken based on an MIB report as the information must be independently verified first. MIB's mission is to uncover errors, omissions, misrepresentations on insurance applications to reduce fraud and anti-selection so companies can offer and consumers can purchase affordable life insurance protection. MIB's data base does not contain actual medical records and information is gathered from an underwriting investigation that may include: information from the applicant's medical questionnaire, relevant information from the applicant's attending physician, notice of adverse lab test results (non-specific flag as to values), and DMV information. MIB reports are regulated by the Fair Credit and Reporting Act and consumers may request disclosure of their MIB report, should they have one, for free once each year.

According to the Federal Trade Commission, MIB’s member companies account for 99 percent of the individual life insurance policies and 80 percent of all health and disability policies issued in the United States and Canada.[1] Under the FCRA, MIB is categorized as a "nationwide specialty consumer reporting agency" and must provide annual disclosure of credit reports to all consumers who request their files.[2]

History

Once known as the "Medical Information Bureau, Inc." MIB was organized in 1902 to provide fraud protection services to insurers.[3]

From 1902 through 1945, MIB was governed by a sub-committee of the Association of Life Insurance Medical Directors of America (ALIMDA). In 1946, MIB was established as an unincorporated association under New York law and, in 1978, it became a Delaware membership corporation.[4]

Use of data and controversy

MIB has been the subject of ongoing controversy since the 1970s. Consumers were largely unaware of the MIB’s existence until 1974 when the Pennsylvania Insurance Commissioner Herb Denenberg threatened MIB member companies in the state to disclose their use of MIB consumer files or lose licenses to operate in the Pennsylvania insurance market.[5][6] At the root of the controversy is the organization’s penchant for secrecy. Today, the controversy continues, though to a lesser extent: MIB routinely refuses to release the list of codes in use.[7] Now, in accordance with the Fair Credit Reporting Act, individuals can obtain a free copy of their MIB consumer file once a year.[8][9]

References

  1. ↑ "Nation’s Largest Insurance Reporting Agency Agrees To Expand Consumer Rights". Ftc.gov. 2011-06-24. Retrieved 2013-10-02.
  2. ↑ "MIB Group, Inc. Consumer Guide". mib.com. Retrieved 10 February 2011.
  3. ↑ "MIB Group - History of MIB" Archived April 12, 2010, at the Wayback Machine.
  4. ↑ Littell, Bob (2000-02-07). "The Mysterious MIB - Not Any More.". The National Underwriter. Retrieved 2006-08-04.
  5. ↑ Pennsylvania Insurance Department Bulletins, "Use of The Medical Information Bureau by Life Insurance Companies," dated Feb. 15, 1974 and May 3, 1974
  6. ↑ "Herb Denenberg has been an investigative and consumer reporter and columnist for over 25 years". Badfaithinsurance.org. Retrieved 2013-10-02.
  7. ↑ Garfinkel, Simson (2001-01-01). Database Nation : The Death of Privacy in the 21st Century. ISBN 0-596-00105-3.
  8. ↑ "Request Your Consumer File". Retrieved 23 October 2014.
  9. ↑ Root, Jeff. "The Truth About the MIB". RootFin. Retrieved 23 October 2014.

External links

 This article incorporates public domain material from the United States Government document "http://www.ftc.gov/opa/1995/06/mib.htm".

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