What action would the insurance company NOT take upon discovering a non-disclosed medical history in an applicant?

In the context of health insurance, when an applicant fails to disclose a medical history, the insurance company has specific protocols to follow. The action that the insurance company would typically NOT take upon discovering this non-disclosure is to send a notice to the Medical Information Bureau (MIB) that the applicant was declined.

The MIB serves as a resource for insurers to share medical information about applicants, particularly for underwriting purposes. When an insurer declines coverage based on non-disclosed medical history, it may not always report this to the MIB. Reporting a decline to the MIB may occur if the applicant's case involves material misrepresentation or if there's a significant impact on insurability, but it is not an automatic step for every declined application.

Instead, insurance companies often take proactive measures, such as adjusting premiums based on the applicant's full medical history or requesting further information to make a more informed decision. Providing coverage regardless of the conditions doesn't align with standard underwriting practices, as the insurer assesses risk based on disclosed medical information, which is essential for determining eligibility and setting premiums.