MIB Total Line Codes, which are now available free of charge to all members who contribute data to the In Force Data Vault, offer underwriters immediate visibility into the presence of both in force and terminated coverage information on an applicant.
This case study, based on real data from one of our members, demonstrates the power of these codes to deliver actionable insights, to improve risk assessment and decision-making.
Details disclosed on application:
- Female applicant age 51 applies for $500K in coverage on 3/1/2025
- Purpose of coverage is income replacement
- $55K annual income
- No pending applications disclosed
- No in force policies disclosed
- No medical history disclosed
Insights provided by Total Line Codes
The MIB Checking Service returned a Total Line Code revealing the presence of in force coverage. The modifiers returned with the code show:
- Range of aggregate coverage in force: Between $1,000,001 - $2,000,000
- Number of policies in force: 2
- Time of most recent activity: > 5 years
Based on this data alone, there is reason to pause before approving the policy since the code has flagged a discrepancy on the application related to in force coverage.
Additional insights provided by the Insurance Activity Index (IAI)
The IAI revealed 2 pending applications with two additional member companies totaling another $1,000,000 in coverage applied for:
- $500,000 application submitted 1 month prior to current application (2/5/2025)
- $500,000 application submitted 3 months prior to current application (1/10/2025)
Underwriting action
Armed with this information the underwriter paused the case, re-question the applicant about the in force coverage, the purpose of the policies, and the additional coverage applied for - to ensure the total line being pursued could be financially justified.
Due to the combination of undisclosed in force and pending applications, the underwriter also ordered medical records to ensure there weren’t additional non-disclosures on the application.
The applicant ultimately admitted to the in force coverage, however, undisclosed medical information was uncovered with significant risk implications.
As such, the carrier declined to participate in the risk.
High risk policy averted
What appeared at first blush to be a low face amount low risk policy was revealed to be one with total line of coverage in excess of $2M with significant medical risk. Without the total line codes raising red flags, the underwriter could have streamlined a case that required much more investigation.
As the life insurance industry continues to evolve, access to comprehensive, real-time data is becoming a key differentiator in the battle against adverse selection. We encourage you to explore how Total Line Codes can support your underwriting efforts and help you stay ahead of the curve.
