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

The purpose of the Medical Information Bureau (MIB) is to share medical data among member companies. The MIB acts as a source of information for insurers, allowing them to obtain pertinent medical histories and health-related information about individuals applying for insurance. This facilitates the underwriting process by making it easier for insurers to assess risk levels based on existing medical data. The MIB helps streamline the application process, improve risk assessment, and enhance the overall efficiency of the insurance industry.

Access to this shared database enables insurance companies to identify any significant health conditions that may affect an applicant's premiums, thus ensuring that underwriting decisions are based on comprehensive and accurate data. This is particularly valuable in managing risk and mitigating potential losses for insurers, as they can better ascertain the likelihood of claims based on an applicant's health history.

The other options do not accurately reflect the main role of the MIB. For instance, while MIB's information can influence underwriting practices, it does not directly recommend premium rates or provide actuarial insights on specific dread diseases. Its focus is primarily on sharing relevant medical information among its members, rather than on larger group health plans or specific conditions.