MIB Member Compliance - MIB Group, Inc.

MIB has successfully operated an information exchange with its Members for over 105 years. The MIB information exchange is conducted in conformity with longstanding General Rules that require the protection and safeguarding of confidential consumer medical information. While Medical Directors and Chief Underwriters have traditionally taken responsibility for Member compliance with MIB's General Rules, MIB now partners with compliance professionals at Member companies. This partnership addresses efforts to comply with the federal Fair Credit Reporting Act, as amended by the Fair and Accurate Credit Transactions Act (and regulations promulgated thereunder), state and federal privacy and insurance laws, and regulations under each.

MIB is deeply committed to providing its services to Member life and health insurance companies in a manner that allows their full compliance with applicable laws protecting the privacy and security of consumer information, including Gramm-Leach-Bliley Act, the Privacy and Security Rules promulgated by the Department of Health and Human Services under the Health Insurance Portability and Accountability Act ("HIPAA"), and numerous state privacy laws, including the NAIC Model Insurance Information and Privacy Act.

Classified as a "nationwide specialty consumer reporting agency," MIB is directly regulated under the federal Fair Credit Reporting Act ("FCRA"), which was enacted by Congress in 1970 to promote accuracy, fairness, and the privacy of personal information assembled by "consumer reporting agencies." Since 1974, MIB has required all Members to comply with its rules as they relate to the FCRA regardless if the Member is a United States or Canadian domiciled insurance company. Because MIB's operations are regulated as a consumer reporting agency under FCRA, it provides both Canadian and US consumers with the rights, protections and privileges available under FCRA without any differentiation based on residence, citizenship or other nexus. In short, MIB conducts its operations throughout North America with a consistently high degree of confidentiality and security.

MIB has many Canadian Members and, accordingly, it receives "personal information" about Canadian insureds. The collection, use and disclosure of such personal information is governed by the Personal Information Protection and Electronic Documents Act ("PIPEDA") and provincial laws such as "An Act Respecting the Protection of Personal Information in the Private Sector" in Quebec. MIB has agreed to protect such information in a manner that is substantially similar to each of its Canadian Members' privacy and security practices, and in accordance with applicable laws.

MIB's information exchange is operated in strict compliance with longstanding General Rules, Internal Procedural Rules and its Guide to Investigation.

At the time of a proposed insured's application, the MIB General Rules require Member companies to notify the consumer that a report regarding their insurability may be made to MIB. The MIB General Rules also specify the contents of the MIB authorization that each individual must sign. When a report is issued, it may be accessed if an application for life or health insurance or a claim for benefits is submitted to an MIB Member company. MIB may then supply such company with an MIB report. Reportable MIB records are currently purged after seven (7) years in order to prevent the reporting of obsolete information.

Among other things, the MIB General Rules provide: (i) that all personal information received, stored and transmitted by MIB shall be in coded form to preserve its confidential nature; (ii) that each Member company shall use MIB's information solely for personal life and health underwriting and claims purposes; and (iii) that MIB codes may not be used to determine an individual's eligibility for insurance. MIB also requires meticulous observance of the Consumer Protective Procedures set forth in General Rule C, along with Internal Procedural Rules, and a Guide to Investigation, which ensures compliance with the Fair Credit Reporting Act.

MIB has recently provided guidance to Members on the following topics that may be of interest to compliance professionals at Member companies. These documents are protected. To obtain access, contact Carolyn Teehan.