#1
Which of the following is NOT a common health insurance underwriting practice?
Providing medical treatment to policyholders
ExplanationUnderwriting involves risk assessment, not medical treatment provision.
#2
What does the term 'underwriting' mean in the context of health insurance?
Reviewing and evaluating risks associated with insuring individuals
ExplanationUnderwriting involves assessing risks associated with insuring individuals.
#3
Which of the following factors can affect the premium charged for health insurance?
Age
ExplanationAge can impact the premium cost in health insurance.
#4
Which of the following statements about 'underwriting' in health insurance is correct?
It is the process of evaluating risk and setting premiums.
ExplanationUnderwriting involves risk evaluation and premium setting.
#5
What is 'pre-existing condition' in health insurance?
A condition that existed before the start of the insurance coverage.
ExplanationA pre-existing condition is an ailment present before obtaining insurance.
#6
Which of the following factors is typically NOT considered during health insurance underwriting?
Favorite color
ExplanationFavorite color is not a relevant factor for underwriting.
#7
What is 'medical underwriting' in health insurance?
Assessing an individual's medical history and health status
ExplanationMedical underwriting involves evaluating medical history and health status.
#8
What is 'adverse selection' in health insurance?
The tendency for high-risk individuals to be more likely to purchase insurance
ExplanationAdverse selection occurs when high-risk individuals are more inclined to buy insurance.
#9
Which of the following is NOT a type of health insurance underwriting method?
Occupation Rating
ExplanationOccupation Rating is not a method used in health insurance underwriting.
#10
What is 'guaranteed issue' in health insurance?
The provision that requires insurers to offer coverage to all applicants regardless of health status
ExplanationGuaranteed issue mandates coverage for all applicants irrespective of health status.
#11
Which of the following statements about 'risk classification' in health insurance is true?
It helps insurers assess the likelihood of an individual filing a claim.
ExplanationRisk classification assists in predicting claim likelihood.
#12
What is 'risk assessment' in health insurance underwriting?
Evaluating the probability of a policyholder needing medical treatment
ExplanationRisk assessment evaluates the likelihood of policyholders requiring medical treatment.
#13
What is the purpose of 'medical records review' in health insurance underwriting?
To identify any undisclosed pre-existing conditions or health risks
ExplanationMedical records review helps in identifying undisclosed health risks or pre-existing conditions.
#14
Which of the following is an example of 'exclusion' in health insurance underwriting?
Refusing coverage to individuals with certain pre-existing conditions
ExplanationExclusion involves denying coverage based on pre-existing conditions.
#15
What is the purpose of 'risk management' in health insurance underwriting?
To minimize the likelihood of policyholders filing claims
ExplanationRisk management aims to reduce the frequency of policyholders filing claims.