The Databases They Check
When you apply for insurance — life, auto, home, or health — the company doesn't just take your word for it. They verify your answers against a network of third-party databases. Here's what they access:
MIB (Medical Information Bureau): If you've applied for individual life or health insurance in the past 7 years, your application answers were coded and stored in the MIB database. When you apply again, the new insurer checks your MIB file to see if your answers are consistent. Discrepancies get flagged.
Prescription drug databases (Rx check): Insurers can access a record of every prescription you've filled in the past 5 years through services like Milliman IntelliScript. They know what medications you take, what conditions you're being treated for, and how consistently you fill prescriptions — even if you didn't mention those conditions on your application.
Motor vehicle records (MVR): Your driving history — speeding tickets, accidents, DUI convictions — is available to insurers through state DMV databases. Auto and life insurance companies both check this.
Credit-based insurance scores: In 46 states, auto and home insurers pull a version of your credit report. Life insurers don't use credit scores, but they do check for bankruptcies.
CLUE reports (Comprehensive Loss Underwriting Exchange): This LexisNexis database tracks every insurance claim you've filed in the past 7 years — auto, home, and renters. A history of frequent claims can raise your premiums or even cause a denial.
Why This Matters for Your Application
The single most important takeaway: be honest on every insurance application. Not because it's virtuous (though it is) — but because they're going to find out anyway.
If your life insurance application says you don't smoke but your prescription database shows nicotine replacement therapy, that's a red flag. If you report no medical conditions but your MIB file shows a previous application where you disclosed high blood pressure, your new application gets flagged for investigation.
The consequences of dishonesty are severe: higher premiums, policy cancellation, or — worst case — a denied death benefit claim for your family when they need it most. Insurers have a 2-year contestability period during which they can investigate and void your policy if they find material misrepresentation.
You Can Check Your Own Files
You have the legal right to see what insurers see:
- MIB report: Request your free annual copy at mib.com
- CLUE report: Request from LexisNexis at consumer.risk.lexisnexis.com
- Prescription history: Request your RxHistories report from Milliman
- Credit report: Free at annualcreditreport.com
Check these before applying for major policies. Dispute any errors you find — they can cost you real money.
How to Use This Knowledge to Your Advantage
Understanding what insurers see lets you shop smarter. If you know your prescription history will flag a condition, you can work with an independent agent who knows which carriers are most favorable for that condition. Different insurers weigh the same data differently — what gets you declined at one company might be standard rates at another.
Also, knowing your CLUE report exists means you should think twice before filing small claims. That $800 fender-bender claim follows you for 7 years and could cost you more in premium increases than the claim was worth.