Which of the following is an underwriting information source?

Which of the following is an underwriting information source?

• A. Policy Loan
• B. Medical Information Bureau (MIB)
• C. Beneficiary Designation
• D. Premium Financing

Answer: (B)

Underwriting information sources are places where insurers gather data to assess risk and price coverage. The Medical Information Bureau is a centralized database that life and health insurers use to share information about an applicant’s medical history. During underwriting, this helps detect misstatements or undisclosed health issues by comparing what the applicant reports with information in the MIB. It’s a standard data source that directly informs the underwriting decision, not a feature of the policy or a method of paying for it. A policy loan is a loan against the policy’s cash value and doesn’t provide underwriting data. A beneficiary designation is about who will receive the death benefit, not information used for evaluating risk. Premium financing involves borrowing to pay premiums and likewise isn’t an information source used in underwriting.

Underwriting information sources are places where insurers gather data to assess risk and price coverage. The Medical Information Bureau is a centralized database that life and health insurers use to share information about an applicant’s medical history. During underwriting, this helps detect misstatements or undisclosed health issues by comparing what the applicant reports with information in the MIB. It’s a standard data source that directly informs the underwriting decision, not a feature of the policy or a method of paying for it.

A policy loan is a loan against the policy’s cash value and doesn’t provide underwriting data. A beneficiary designation is about who will receive the death benefit, not information used for evaluating risk. Premium financing involves borrowing to pay premiums and likewise isn’t an information source used in underwriting.