What is the purpose of obtaining MIB (Medical Information Bureau) and motor vehicle reports in field underwriting?

• A. To identify undisclosed medical conditions or inconsistent health information and assess driving risk that could influence insurability or premium.
• B. To verify a driver's license.
• C. To evaluate investment options.
• D. To check credit score.

Answer: (A)

In field underwriting, these reports are used to verify information and gauge risk that could affect insurability or premium. The MIB collects medical information from participating insurers and is intended to flag undisclosed health conditions or inconsistencies in health history. This helps prevent misrepresentation at the application stage and ensures the underwriter has a fuller, more accurate picture of the applicant’s medical risk before a policy is issued or priced. The motor vehicle report provides the applicant’s driving history—past accidents, traffic violations, license status, and related factors—that inform the future claim risk associated with driving behavior. Together, these sources give the insurer a clearer basis to decide whether to offer coverage and at what premium, rather than relying solely on self-reported information.