Which term describes the process of evaluating and classifying risk for life or health insurance applications?

Which term describes the process of evaluating and classifying risk for life or health insurance applications?

• A. Underwriting
• B. Field Underwriter
• C. Attending Physician Statement
• D. Application

Answer: (A)

Underwriting is the process of evaluating and classifying the risk of a life or health insurance applicant. An underwriter reviews health history, current medical status, age, family history, medications, lifestyle, occupation, and other risk factors to determine insurability and set an appropriate premium or decide if coverage should be declined. This classification—such as standard, preferred, substandard—helps the insurer price risk and protect its solvency. Other terms describe parts of the process or roles involved but aren’t the evaluation itself. An attending physician statement is a medical report from a doctor that provides details the underwriter may use. An application is the form the applicant fills out to start the process. A field underwriter is the person who collects information in the field, assisting the process but not making the final risk decision.

Underwriting is the process of evaluating and classifying the risk of a life or health insurance applicant. An underwriter reviews health history, current medical status, age, family history, medications, lifestyle, occupation, and other risk factors to determine insurability and set an appropriate premium or decide if coverage should be declined. This classification—such as standard, preferred, substandard—helps the insurer price risk and protect its solvency.

Other terms describe parts of the process or roles involved but aren’t the evaluation itself. An attending physician statement is a medical report from a doctor that provides details the underwriter may use. An application is the form the applicant fills out to start the process. A field underwriter is the person who collects information in the field, assisting the process but not making the final risk decision.