Medical Information Bureau
Encyclopedia
MIB Group, Inc is a cooperative data exchange formed by the North American life insurance
industry in 1909. MIB is the only insurance consumer reporting agency in North America and operates a database
of medical information on individuals who have previously applied for health insurance
, life insurance
, disability insurance
, critical illness insurance
and long-term care insurance. MIB Group, Inc. is based in Braintree, Massachusetts
.
According to the Federal Trade Commission
, MIB’s member companies account for 99 percent of the individual life insurance policies and 80 percent of all health and disability policies issued in the United States
and Canada
. Under the FCRA, is categorized as a "nationwide specialty consumer reporting agency" and must provide annual disclosure of credit reports to all consumers who request their files.
. Once known as the "Medical Information Bureau," it was organized in 1902 to provide fraud protection services to insurers.
From 1902 through 1945, MIB was governed by a sub-committee of the Association of Life Insurance Medical Directors of America (ALIMDA). In 1946, MIB was established as an unincorporated association under New York law. In 1978, it became a Delaware membership corporation.
MIB Group, Inc.’s subsidiary operating company, MIB Inc., maintains a confidential consumer database for use by its corporate member companies. It exchanges personal data about individuals among its corporate members and issues consumer reports. It also provides disclosure to consumers of their MIB files.
Despite its size, MIB Group's name is generally not known among the general public.
Insurance Commissioner threatened MIB member companies in the state to disclose their use of MIB consumer files or lose license to operate in the Pennsylvania
insurance market. At the root of the controversy is the organization’s penchant for secrecy. For many years, insurance agencies consulted MIB without telling applicants about the files. Today, the secret continues, if to a lesser extent: MIB refuses to release the list of codes it uses.
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
industry in 1909. MIB is the only insurance consumer reporting agency in North America and operates a database
Database
A database is an organized collection of data for one or more purposes, usually in digital form. The data are typically organized to model relevant aspects of reality , in a way that supports processes requiring this information...
of medical information on individuals who have previously applied for health insurance
Health insurance
Health insurance is insurance against the risk of incurring medical expenses among individuals. By estimating the overall risk of health care expenses among a targeted group, an insurer can develop a routine finance structure, such as a monthly premium or payroll tax, to ensure that money is...
, life insurance
Life insurance
Life insurance is a contract between an insurance policy holder and an insurer, where the insurer promises to pay a designated beneficiary a sum of money upon the death of the insured person. Depending on the contract, other events such as terminal illness or critical illness may also trigger...
, disability insurance
Disability insurance
Disability Insurance, often called DI or disability income insurance, is a form of insurance that insures the beneficiary's earned income against the risk that a disability will make working uncomfortable , painful , or impossible...
, critical illness insurance
Critical illness insurance
Critical illness insurance or critical illness cover is an insurance product, where the insurer is contracted to typically make a lump sum cash payment if the policyholder is diagnosed with one of the critical illnesses listed in the insurance policy....
and long-term care insurance. MIB Group, Inc. is based in Braintree, Massachusetts
Braintree, Massachusetts
The Town of Braintree is a suburban city in Norfolk County, Massachusetts, United States. Although officially known as a town, Braintree adopted a municipal charter, effective 2008, with a mayor-council form of government and is considered a city under Massachusetts law. The population was 35,744...
.
According to the Federal Trade Commission
Federal Trade Commission
The Federal Trade Commission is an independent agency of the United States government, established in 1914 by the Federal Trade Commission Act...
, MIB’s member companies account for 99 percent of the individual life insurance policies and 80 percent of all health and disability policies issued in the United States
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
and Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. Under the FCRA, is categorized as a "nationwide specialty consumer reporting agency" and must provide annual disclosure of credit reports to all consumers who request their files.
History and business model
MIB is a membership corporation owned by approximately 500 member insurance companies in the United States and CanadaCanada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
. Once known as the "Medical Information Bureau," it was organized in 1902 to provide fraud protection services to insurers.
From 1902 through 1945, MIB was governed by a sub-committee of the Association of Life Insurance Medical Directors of America (ALIMDA). In 1946, MIB was established as an unincorporated association under New York law. In 1978, it became a Delaware membership corporation.
MIB Group, Inc.’s subsidiary operating company, MIB Inc., maintains a confidential consumer database for use by its corporate member companies. It exchanges personal data about individuals among its corporate members and issues consumer reports. It also provides disclosure to consumers of their MIB files.
Despite its size, MIB Group's name is generally not known among the general public.
Access and use of data
MIB has been the subject of ongoing controversy since the 1970’s, because insurance agencies consulted MIB without telling applicants about the files. Consumers were largely unaware of the MIB’s existence until 1974 when the PennsylvaniaPennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
Insurance Commissioner threatened MIB member companies in the state to disclose their use of MIB consumer files or lose license to operate in the Pennsylvania
Pennsylvania
The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to...
insurance market. At the root of the controversy is the organization’s penchant for secrecy. For many years, insurance agencies consulted MIB without telling applicants about the files. Today, the secret continues, if to a lesser extent: MIB refuses to release the list of codes it uses.