Final answer:
The Medical Information Bureau (MIB) is the source that provides insurers with coded information about applicants' previous insurance applications, which aids in assessing risks and managing insurance costs. The correct option is a.
Step-by-step explanation:
The Medical Information Bureau (MIB) is the source that releases coded information to insurers regarding information included on previous insurance applications.
The other options, such as the Department of Motor Vehicles (DMV), Federal Trade Commission (FTC), and Centers for Disease Control and Prevention (CDC), do not serve this specific function for insurance companies.
The MIB helps insurance companies to assess health and life insurance risks by providing data about an applicant's medical conditions or risky lifestyle choices that have been noted by other insurers.
This helps control costs and calculate premiums by identifying applicants with pre-existing conditions or high-risk behaviors, making the process more efficient than a costly investigation into each person's health or driving habits. The correct option is a.