The MIB  has been around for many years and much of the information they provide is used to combat fraud, but on the other hand this information is used by subscribers to analyze applicants for all types of insurance.  The agency provides the information to it's members and how the information is used by the individual underwriters is up to the individual company.   With the increased use stated in this article, it appears the activity in generating information searches is on the rise.  BD

LAS VEGAS, June 20 /PRNewswire-FirstCall/ -- Institute 2007, AHIP's Annual Meeting (June 20, 2007) -- MIB, the insurance industry's leading provider of information used to detect omissions and material misrepresentations on insurance applications today announced that inquiries to its MIB Checking Service from member health insurers jumped fourteen percent in the first six months of fiscal year 2007, as compared to the same period last year. Greater use of the MIB database by health plans and insurance companies reflects the addition of several new members as well as increased application activity within existing health members. Among those recently onboard with MIB are: Alliance Health and Life Insurance Company, American Republic Insurance and World Insurance, and Medical Mutual of Ohio.

"We're implementing our programs with MIB in June and July," says Meg Brown, chief underwriter for American Republic and World Insurance. "We already have an admirably low rescission rate, and we think MIB will allow us to improve performance even further. Frankly, as use of MIB becomes more widespread among health insurers, we want to be sure we have access to the same data our competitors have."

"Companies and health plans selling individual medical expense insurance are increasingly seeking new tools to give them a better understanding of their applicants' medical profiles up front," says Douglas M. Mertz, MIB Solutions' vice president. "MIB information is the fastest, most cost- effective way to help determine if medical statements on applications are accurate and complete." Policies issued under erroneous medical histories penalize everyone -- companies are impacted by unexpected claim costs and difficult rescissions and reformations, and the additional costs are borne by every policyholder in the form of inflated premiums. "MIB helps companies better identify material misrepresentations on their applications so insurers can make more informed decisions around the risks they underwrite," says Mertz.

Health Insurers Show 14 Percent Increase in Use of MIB Data: Financial News - Yahoo! Finance

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