Which of the following statements concerning the Medical Information Bureau is correct?

The statement regarding the Medical Information Bureau is accurate as it reflects the organization's primary function. The Medical Information Bureau (MIB) serves as a resource for insurance companies, providing relevant medical information to assist underwriters in evaluating and classifying the risks associated with applicants. By compiling data related to medical conditions and history, the MIB enables insurers to make informed decisions when assessing applications for life insurance and other related products.

This function is critical in the underwriting process because it helps mitigate the risk of adverse selection, where individuals with higher risks may seek insurance more aggressively. Through the information shared by the MIB, underwriters can more accurately price policies, manage risk, and uphold the integrity of the insurance system.

Other options do not accurately describe the MIB's role: it does not deny coverage based solely on pre-existing conditions; it does not maintain a comprehensive record of all medical histories; and it utilizes data from various sources, not just hospitals. Thus, focusing on how the MIB aids in risk assessment underscores its value in the life insurance industry.