When an insurer receives a Medical Information Bureau report showing undisclosed prior health issues, which action will they NOT likely take?

When an insurer receives a Medical Information Bureau (MIB) report that indicates undisclosed prior health issues, they are likely to take several actions to address the discrepancies. One of those actions is to send a notice to the applicant to inform them of the findings and possibly seek clarification. They may also issue the policy with exclusions based on the health issues identified, or they could request additional medical information from the applicant to make a fully informed underwriting decision.

Sending a notice to the MIB indicating that the applicant was declined is not a typical action taken in this scenario. Insurers may update MIB records to reflect the status of an application, but informing MIB about declines, especially regarding specific applicant decisions, is usually not part of the process. The MIB primarily serves as a data-sharing entity, compiling information about consumers for insurers to assess risk, rather than being a recipient of decline notices. Thus, this action is less likely compared to others that directly involve the applicant.