How Does MIB Fit Into this Picture Concerning Misrepresentation and Fraud Prevention?
Assume that a man was told by his physician that he had a suspicious spot on his chest X-ray. He then went out and applied for life insurance and correctly listed this doctor’s name, the date he had seen him, and the fact that a suspicious growth had been noted. Later when the insurance company ordered the medical records and saw that there was some question as to the diagnosis of this “spot”, the company would probably either “postpone” issuing the coverage until a definitive diagnosis could be made or decline the coverage. Also, assuming the company was a member company of MIB, the underwriter would enter an appropriate code that would serve as a “red flag” to another underwriter that this condition was unresolved. If this man applied to another insurance company but omitted this doctor’s name, or even the fact that he had been to see him, the new company (as a member of MIB) would run an MIB check and this code would alert the underwriter to the medical condition.
