What is the purpose of the Medical Information Bureau (MIB)?

The Medical Information Bureau (MIB) serves a crucial role in the life insurance industry by enabling insurance companies to assess the risk associated with insuring applicants. By compiling and sharing medical information about applicants, the MIB allows insurers to make more informed underwriting decisions. This risk evaluation process is essential because it helps insurers determine the likelihood of a potential policyholder making a claim based on their health history, thus influencing underwriting guidelines and premium rates.

The MIB collects medical information and provides it to its member companies, which can include data on health conditions, treatment history, and other related information pertinent to assessing an individual's health risk. This method of information sharing promotes transparency in the underwriting process and helps prevent misrepresentation of health statuses by applicants.

While other options might superficially relate to insurance practices, they do not accurately capture the primary function of the MIB. The agency is not involved in providing legal support or collecting premiums, nor is its main focus on assessing financial status. The primary purpose is clearly aligned with risk evaluation, making option C the correct choice.