An applicant cannot be refused simply because of some

An applicant cannot be refused simply because of some adverse information
discovered through the MIB.
Know This! Insurers cannot refuse coverage solely on the basis of adverse
information on an MIB report.
Medical Examinations and Lab Tests Including HIV

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Medical examinations, when required by the insurance company, are conducted by
physicians or paramedics at the insurance company's expense. Usually such
exams are not required with regard to health insurance, thus stressing the
importance of the agent in recording medical information on the application. The
medical exam requirement is more common with life insurance underwriting. If an
insurer requests a medical examination, the insurer is responsible for the costs of
the exam.
It is common among insurers to require an HIV test when an applicant is applying
for a large amount of coverage, or for any increased and additional benefits. To
ensure proper obtaining and handling of results, and to protect the insureds'
privacy, states have enacted the following laws and regulations for
insurers requiring an applicant to submit to an HIV test:
Prior to testing, the insurer must disclose the use of testing to the applicant, and
obtain written consent from the applicant on the approved form;
The insurer must establish written policies and procedures for the internal
dissemination of test results among its producers and employees to ensure
confidentiality;
The test must be administered in a manner that meets the protocol of the U.S.
Department of Health and Human Services;
The insurer must disclose the test results as authorized by the applicant in
writing;
If the applicant has not identified a physician to receive test results, the positive
test results and the identity of the applicant must be sent to the state
Department of Health; and
The reporting of test results must include the name and address of the reporting
company.
Requiring an HIV test is not considered unfair discrimination as long as the
following conditions are met:
The testing is required for all individuals in the same class;
Proposed insured is not denied coverage on the basis of such testing alone (if no
other conditions specified in the Insurance Code apply); and
The tests and testing procedures have been approved by the United States Food
and Drug Administration (FDA) and otherwise comply with applicable state and
federal laws.
Insurers are permitted to ask a proposed insured whether he or she has tested
positive on an AIDS-related test.
Use and Disclosure of Insurance Information
When insurers plan to seek and use information from investigators, they must
first provide the applicant or insured with a written Disclosure Authorization
Notice . The notice must state the insurer’s practice regarding collection and use
of personal information. The disclosure authorization form must be written in plain
language, and must be approved by the head of the Department of Insurance.