What is the “MIB Checking Service”? The MIB, Inc. marketing materials offer the following description of the “MIB Checking Service,” an electronic information product to exchange consumer information among insurance and healthcare corporations:
“MIB Checking Service – Issue with Confidence”
The MIB Checking Service is the flagship service offered by MIB. Through this service, MIB provides for the exchange of confidential, coded underwriting information among its members. Members use the MIB Checking Service to compare an individual applicant’s information against information in the MIB database. This exchange of information helps members to detect and deter fraud by applicants who omit or seek to conceal facts that are essential to the underwriting process.
The MIB Checking Service makes it possible to exchange information quickly, efficiently, and inexpensively.
ABOUT MIB, INC.
MIB Group, Inc. (“MIB”) is a membership corporation owned by approximately 470 member insurance companies in the US and Canada. Organized in 1902, MIB’s core fraud protection services protect insurers, policyholders and applicants from attempts to conceal or omit information material to the sound and equitable underwriting of life, health, disability income, critical illness and long-term care insurance.From 1902 through 1945, MIB was governed by a sub-committee of the Association of Life Insurance Medical Directors of America (ALIMDA). In 1946, MIB was established as an unincorporated association under New York law. In 1978, a decision was made to incorporate, thereby transforming MIB, as a business entity, from an unincorporated association into a Delaware membership corporation. The decision to incorporate MIB was well-reasoned and came at a critical crossroads in MIB’s history. Incorporation provided MIB member companies with limited liability and rendered moot the lingering legal questions that MIB had about the ability of an unincorporated association to execute contracts in its own name, among other things.
As a “membership” or “non-stock corporation,” MIB has not been capitalized through the issuance of stock and MIB has no shareholders. MIB’s members are the ultimate beneficial owners of the corporation. In contrast to “for profit” corporations, MIB was organized for purposes other than generating profit and no part of the corporation’s income is distributed to its members, directors, or officers. However, MIB does not enjoy tax exempt status.
Recognizing the need to develop new products and services, MIB’s Board of Directors and membership authorized management to reorganize the company in 1999. To do so, MIB Group, Inc. became a parent company (acting as a holding company) and two wholly-owned “for profit” stock subsidiaries were formed: MIB, Inc. and e-Services Corporation. [In 2006, the name “e-Services Corporation” was changed to “MIB Solutions, Inc.”]. The current organizational structure of MIB Group, Inc. allows MIB Solutions to develop new products and services, while MIB Inc. continues to provide the flagship MIB Checking Service (MIB’s core fraud protection services).”