Illinois Health Insurance Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Get ready for the Illinois Health Insurance Test. Study using multiple choice questions, each with hints and detailed explanations. Prepare thoroughly for your exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is the purpose of Medical Information Bureau (MIB) report?

A. Determines if total benefits are reasonable compared to applicant's income
B. To verify the accuracy and completeness of the application
C. Clearing house for medical information for insurance companies
D. Establish tax deductions for insurance premiums

The correct answer is: C. Clearing house for medical information for insurance companies

The Medical Information Bureau (MIB) serves as a clearinghouse for medical information for insurance companies, which allows them to share and access specific medical data about applicants. This centralized approach helps insurers verify the information provided in applications, streamlining the underwriting process while reducing potential fraud. By collecting and maintaining records on various health-related factors from past insurance applications, the MIB helps companies assess risk more accurately and efficiently. This is critical in determining whether to approve coverage and at what rates, ultimately aiding insurers in making more informed underwriting decisions. The other choices do not encapsulate the primary function of the MIB, as they pertain either to direct application verification or to financial management concerning insurance premiums, rather than the specific role of the MIB in handling medical information for underwriting purposes.