AD Banker Comprehensive Practice Exam

What alerts insurer home office underwriters of errors, omissions, or misrepresentations on insurance applications?

1. MIB

2. Medical Doctors Association

3. Federal Insurance Information Bureau

4. State Insurance Inspection Department Report

The correct answer is: MIB

The Medical Information Bureau (MIB) plays a crucial role in alerting insurers' home office underwriters about errors, omissions, or misrepresentations on insurance applications. The MIB acts as a resource for insurance companies to share information about applicants, including medical history and insurance claims. When an applicant applies for insurance, the insurer may access the MIB database to verify the information provided and check for any discrepancies. If an insurance application has inconsistencies or raises red flags based on past applications or medical history recorded in the MIB, underwriters will be alerted to potential errors or misrepresentations. This helps ensure that the underwriting process is thorough and accurate, reducing the risk for the insurer and protecting honest applicants from the consequences of fraud. In contrast, the other options listed do not serve the same purpose of monitoring errors or misrepresentations on insurance applications. They may have their roles in the insurance landscape, but they do not specifically focus on alerting underwriters to inaccuracies on applications.