California Life-Only & Accident and Health AgentAccident and Health InsuranceEasy
An applicant for a health insurance policy is required to undergo a medical examination at the insurer's expense. This examination is typically requested as part of which stage of the insurance process?
- APolicy Delivery
- BClaims Processing
- CUnderwriting
- DPolicy Renewal
Show answer & explanationAnswer & explanation
Correct answer: C. Underwriting
A medical examination is a common tool used during the underwriting stage to assess the applicant's health and determine their insurability and appropriate premium rates.
Why the other options are wrong
- A. Policy delivery is when the policy is given to the insured after approval, not when medical exams are conducted.
- B. Claims processing occurs after a loss, not during the initial application phase.
- D. Policy renewal involves continuing an existing policy, usually without a new medical exam unless health changes are reported.
Underwriting in Health Insurance
The process by which an insurance company evaluates the risk of insuring an applicant to determine if they are insurable, what coverage to offer, and at what premium rate. This often involves reviewing medical history, lifestyle, and sometimes requiring medical exams.
- Assesses risk of applicant.
- Determines insurability and premium.
- May involve medical exams, MIB reports, attending physician statements.
Memory trick: Apply, then UNDERGO a medical exam for UNDERWRITING, then get approved.