Florida Life and Health Insurance License Practice Test

What does the Medical Information Bureau (MIB) report's revelation about the applicant's undisclosed stroke affect?

1. The premium rates offered to the applicant

2. The insurance company's decision to accept or decline the application

3. The need for the insurance company to notify MIB about application denial

4. The coverage terms of the Disability Income insurance

The correct answer is: The insurance company's decision to accept or decline the application

The Medical Information Bureau (MIB) report's revelation about the applicant's undisclosed stroke would affect the insurance company's decision to accept or decline the application. Since the MIB is a non-profit organization that collects and shares medical information on applicants, the insurance company relies on this information to assess the risks associated with insuring an individual. If the applicant has a history of undisclosed health issues, such as a stroke, it could greatly impact the insurance company's decision to accept or decline the application. The other options may be affected by the MIB report, but they are not the primary factor in this scenario. For instance, the premium rates offered to the applicant may be influenced by their health history, but the MIB report itself would not directly impact the rates. Similarly, while the insurance company may be required to notify the MIB of application denials, the MIB report would not directly affect