Comments on: Life Insurance and Medical Information Bureau (MIB)

By: garyc

garyc — Tue, 16 Mar 2010 21:58:48 +0000

I am curious about the claims that folks were denied coverage due to info in the MIB database. I was told that anything in the MIB had to be verified independently and that insurance companies had to justify any decisions with other supporting information. I have no doubt that insurance companies do everything they can to circumvent this and hate the fact that the MIB exists. However, I figured the companies would at least try to keep up appearances and at least say they validated thing independently.

By: The Evil Insurance Salesman

The Evil Insurance Salesman — Tue, 09 Feb 2010 21:59:42 +0000

Anonymous, I just found your comment in my email and wanted to reply. Frankly I’m a little confused. In order for you to have any MIB record, you had to have applied for life insurance sometime in the past. So did the company from the past offer you a coverage?

With regard to marijuana use, I personally don’t know of any one company that would decline a healthy applicant solely based on that. There HAS TO BE other reasons apart from marijuana use. What did the new company specifically tell you their decision was based on? “Drugs other than cocaine” refer to other less risky drugs (typically marijuana) because use of cocaine is considered a high risk and that’s what the companies look for.

The insurance company didn’t violate any HIPAA or civil rights because you signed both HIPAA Authorization and Medical Information Disclosure form when you applied that allowed them to look up your MIB records.

My guess is that the decline was probably based on one of the following:

1. your current medical condition that requires prescribed medical use of marijuana (e.g. mental anxiety is considered a very high risk) and/or

2. you did not disclose the above condition on the app and/or

3. you did not disclose that you were declined for life insurance in the past.

It’s one thing to hide that you smoke occasional pot but quite another thing to hide that you have a condition that requires physician’s prescription of medical marijuana. Hope this helps.

By: Anonymous

Anonymous — Tue, 09 Feb 2010 16:49:32 +0000

I applied for life insurance last year and was unaware of MIB. I was declined life insurance due entirely to what is in my MIB file. I am in my early 50’s and in great health. In fact the technician who tested me could not get my heart rate high enough for my age group, even though he had me run on the treadmill for 20 minutes. He finally gave up and said I was in great health.

Why was I rejected? Solely on the contents of my MIB file. I finally received my MIB report, after numerous failed attempts to get their automated phone system to understand my country as the “United States”. And now, thanks to MIB, I have “two code symbols which translate as follows: 1) Drugs. Marijuana or hashish. and 2) Test for drugs other than cocaine, positive…” I am a legal medical marijuana patient. So I could be either a legal medical marijuana patient or a heroin addict, at least from MIB’s information.

So what is my recourse? Wait 7 years and reapply when I am 60? Or reapply and DON’T allow the insurer to search MIB or put any results into MIB.

This is a clear violation of HIPAA and my civil rights. I am not breaking any laws as medical marijuana is legal in California. This reminds me of the early days of Equifax when it was impossible to get information about your file or get incorrect information out of your file.

By: Raja

Raja — Fri, 18 Dec 2009 03:46:03 +0000

Thanks a lot for all the info… I am having a similar issue with Prudential Life with Elevated Liver Enzymes…. Rates are jacked up 2x.
I may go with another company.. Never Trust These insurance agents – They only want to know how much will they make out of you… As for insurance companies – They are here to make a profit out of you. This is way they will always win. Our politician are bought by them on an hourly basis.

Can’t trust anyone these day. Good luck man… any I hope that i will find something good too.

Ravin

By: The Evil Insurance Salesman

The Evil Insurance Salesman — Mon, 28 Sep 2009 22:00:03 +0000

A few things to consider when shopping for life insurance:

1. Only simplified issue will allow an applicant not to take a paramed. They usually come with coverage limits and are often standard-rated. If you’re healthy and not afraid of the needle, go for the paramed and possibly the preferred rating.

2. “Elevated liver enzyme” – A piece of fruit on an empty stomach in the morning before the paramed visit will throw your lab result into abyss. The best way to prepare for paramed is to “fast”. Eat nothing for at least 12 hours. The longer the better.

3. Always request re-exam if something like above happens. That way the correct numbers will also show up on the MIB.

4. When it comes to term life, the cheapest is NOT always the best. Ask about conversion and renewal options.

5. When it comes to permanent life, always ask to see the guaranteed column (if the agent flinches when you ask, consider another product).

Finally, try not to worry about the commissions. You pay the same premium for the same product no matter where you go. Worry about the features and options and don’t be afraid to ask questions. Cheers.

By: Eliza

Eliza — Fri, 11 Sep 2009 13:12:05 +0000

Thanks for sharing such a wonderful information.

By: Pinyo

Pinyo — Wed, 20 May 2009 14:00:43 +0000

@Rayc – I am sorry about your unfortunate incident. Unfortunately, I don’t have experience fighting something like this. I was fortunate enough to get in touch with a reputable insurance company (Liberty Mutual) who took the time to review medical information from my doctor and perform their own lab tests. The results were counter to what my former agent put in, so I was able to get preferred insurance rate.

You may want to get in touch with a reputable insurance company and show them your medical record and ask them for another test. If their test confirms that you’re healthy, it should be easier to correct the MIB record.

By: Rayc

Rayc — Tue, 19 May 2009 20:43:58 +0000

I’m currently in a fight with the MIB, They erroneously stated that I have cholestrol above 320, High blood pressure 170/110, elevated sugar at 160 and an abnormality on my EKG, complements of a new life insurance application. 2 weeks after the initial test I went to my physican and had my test run once again, cholestrol 185, BP 110/55, Sugar 60, and normal EKG and backed that up with a ultrasound. I since have had my medical insurance increase 4X, had to drop that insurance due to a monthly cost of over $1400.00, denied health insurance from 2 different companies, and currently have no health insurance nor life insurance. I cannot get the mistaken information removed and my doctor cannot get the correct information added because it was not submitted through an Insurance company. Sad case of Guilty until proven innocent. I was further told this can and will hinder my chances of landing a new position on the executive level with a larger firm. Most attorney’s laugh when I explain this situation and do not want to get involved. What exactly do you do?

By: John B.

John B. — Wed, 15 Apr 2009 23:59:05 +0000

I’ve been in the insurance industry for about 12 years now. Problem is, A LOT of agents like to quote overly aggressive premiums. For example, most companies have what they call risk classes: Super preferred nonsmoker, preferred nonsmoker, standard nonsmoker. Generally, super preferred will result in the lowest premiums, and the lesser the class, the higher the premium. Unfortunately, like I mentioned, agents like to “wet your appetite” with a premium based on Super Preferred, then if you get a standard, or substandard rate, it’s all your fault because your health sucks, and YOU are the one wasting their time, they aren’t to blame because you said you were healthy. However, by this time, as you mentioned, you’ve been entangled in the “sales process”. Like any sales process, the more you get sucked into it, the harder it is to get out, and that’s the whole idea. So, if you ever come across an agent giving you a quote, be sure to ask what health rating was assumed.

By: Cappy

Cappy — Sat, 21 Mar 2009 16:37:25 +0000

I am an insurance agent at a small bank and I HATE it when I hear stories like that. In my opinion, you might want to try going to a rep in a local small bank, the reason why I say that is most of the time the banks dont payout as much commision as an independent broker, so the chances that the agent will be motivated by the amount of money he/she stands to make is less. Also, if you are young and can afford it, look into whole life with limited term pay. Its always more per month but you only have to pay the premiums for a limited amout of time (usually 20 years) as opposed to paying until you are 85 yrs old, and you always have the cash value to dip into if you really need it years down the road.