Florida Life and Health Insurance License Practice Test

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Prepare for the Florida Life and Health Insurance License Test. Study with flashcards and multiple choice questions, each with hints and explanations. Get ready for your certification exam with ease!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which statement best explains the relationship between the MIB and insurance companies?

The MIB acts as a regulatory body for insurance companies.
Insurance companies use MIB reports to verify applicants' medical histories.
The MIB directly sells insurance to consumers.
Insurance companies are required to follow MIB recommendations on policy pricing.

The correct answer is: Insurance companies use MIB reports to verify applicants' medical histories.

Insurance companies use MIB reports to verify applicants' medical histories. This statement best explains the relationship between the MIB and insurance companies. The MIB (Medical Information Bureau) is a service that collects medical information on individuals and provides it to insurance companies. This helps insurance companies assess the risk of insuring an individual and determine their premiums. Options A, C, and D are incorrect because the MIB does not act as a regulatory body for insurance companies, does not directly sell insurance to consumers, and insurance companies are not required to follow MIB recommendations on policy pricing.