Florida Life and Health Insurance License Practice Test

For what reason would an insurance company NOT notify the MIB?

1. If the applicant's medical history is accurately disclosed

2. If the application is accepted without additional underwriting

3. If the applicant was declined based on undisclosed medical history

4. If the insurance company requires further medical records from the applicant

The correct answer is: If the applicant was declined based on undisclosed medical history

An insurance company would not notify the MIB if an applicant was declined based on undisclosed medical history because the MIB is typically used to track an individual's medical and insurance history for fraud prevention purposes. If an applicant's medical history is not accurately disclosed, there may be a higher risk of insurance fraud, leading the insurance company to notify the MIB. If the application is accepted without additional underwriting or if the insurance company requires further medical records from the applicant, there is no need to notify the MIB as the application process is still ongoing. Option C is incorrect because it suggests that the insurance company is aware of undisclosed medical history, which would warrant notifying the MIB.