What restriction must an insurer adhere to when using information from the Medical Information Bureau (MIB)?

Insurers must adhere to the restriction that they cannot rate or decline an application solely based on information obtained from the Medical Information Bureau (MIB). The MIB functions as a repository of medical information that helps insurers assess risk and make informed underwriting decisions. However, the intent behind this regulation is to protect consumers from potential misuses of their health information.

In practice, this means that while insurers can consider MIB data in conjunction with other information, they cannot use it as the only basis for deciding to deny coverage or increase premiums. This stipulation is vital in ensuring that applicants have a fair chance to obtain insurance coverage without being unfairly penalized for past medical issues that may have been misrepresented or misunderstood.

The other options do not accurately reflect the regulations associated with MIB data usage. For example, while insurers must disclose MIB information to applicants, this does not pertain to the decision-making process on its own. Furthermore, the use of MIB data is not restricted solely to health insurance policies, and insurers may indeed use the information across various types of insurance products.