MIB Group

MIB Group, Inc (formerly The Medical Information Bureau Inc.) is a covert data exchange formed by the North American life insurance industry in 1909. Its objective is to acquire information on physical and mental health care consumers and pass on this information to other insurance companies upon request, most commonly when the consumer has applied for new or additional insurance coverage or has filed a claim. MIB is the only insurance consumer reporting agency in North America and operates a database of medical information on most individuals who have previously applied for health insurance, life insurance, disability insurance, critical illness insurance and long-term care insurance. Not everyone who has applied for insurance is included in MIB's database.^[1] MIB Group, Inc. is based in Braintree, Massachusetts. Information is obtained and sold without explicit consumer consent. In addition to actual medical records, "information" may include statements made by consumers or other lay persons on insurance application forms and other non-clinical sources, whether or not supported by medical documentation, provided to the MIB. Consumers are technically allowed to have access to MIB files on them, but must have them sent to and "interpreted" by a physician who is not bound to turn them directly or completely over to the consumer.

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.^[1] 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.^[2]

History and business model

MIB is a membership corporation owned by approximately 500 member insurance companies in the United States and Canada. Once known as the "Medical Information Bureau," it was organized in 1902 to provide fraud protection services to insurers.^[3]

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.^[4]

MIB Group, Inc.’s subsidiary operating company, MIB Inc., maintains a confidential consumer database for use by its corporate member companies.^[5] 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.^[6][7]

Access and use of data

MIB has been the subject of ongoing controversy since the 1970s, because insurance agencies consulted MIB without telling applicants about the files. Consumers were largely unaware of the MIB’s existence until 1974 when the Pennsylvania Insurance Commissioner Herb Denenberg 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.^[8][9] 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.^[6] However, now, in accordance with the Fair Credit Reporting Act, individuals can obtain a free copy of their MIB consumer file once a year.^[10][11]

References

1. 1 2 "Nation’s Largest Insurance Reporting Agency Agrees To Expand Consumer Rights". Ftc.gov. 2011-06-24. Retrieved 2013-10-02. 
2. ↑ "MIB Group, Inc. Consumer Guide". mib.com. Retrieved 10 February 2011. 
3. ↑ "MIB Group - History of MIB" Archived April 12, 2010 at the Wayback Machine
4. ↑ Littell, Bob (2000-02-07). "The Mysterious MIB - Not Any More..". The National Underwriter. Retrieved 2006-08-04. 
5. ↑ "MIB.com, About MIB, Inc" Archived May 22, 2009 at the Wayback Machine
6. 1 2 Garfinkel, Simson (2001-01-01). Database Nation : The Death of Privacy in the 21st Century. ISBN 0-596-00105-3. 
7. ↑ "Request Your Medical Information Bureau Annual Report". Voices.yahoo.com. 1995-06-21. Retrieved 2013-10-02. 
8. ↑ Pennsylvania Insurance Department Bulletins, "Use of The Medical Information Bureau by Life Insurance Companies," dated Feb. 15, 1974 and May 3, 1974
9. ↑ "Herb Denenberg has been an investigative and consumer reporter and columnist for over 25 years". Badfaithinsurance.org. Retrieved 2013-10-02. 
10. ↑ "Request Your Consumer File". Retrieved 23 October 2014. 
11. ↑ Root, Jeff. "The Truth About the MIB". RootFin. Retrieved 23 October 2014. 

• "New York Times, Plans Medical Talks to End Exploitation; Bureau Will Keep Public Informed on New Developments Through Radio Broadcasts" May 23, 1932.
• New York Times, "Trying to Avoid an Insurance Debacle" February 22, 1987.

External links

• MIB, Inc.

 This article incorporates public domain material from the United States Government document "http://www.ftc.gov/opa/1995/06/mib.htm".