Washington Life Producer Practice Exam

A guaranteed issue insurance policy has no?

1. Premium payments required

2. Medical underwriting

3. Age limit for applicants

4. Restrictions on beneficiaries

The correct answer is: Medical underwriting

A guaranteed issue insurance policy is designed to offer coverage to individuals regardless of their health status, which means that there is no medical underwriting involved in the application process. This is a key feature of guaranteed issue policies; they are meant to make insurance accessible, especially for those who may have pre-existing conditions or health issues that would otherwise disqualify them from obtaining coverage. Because medical underwriting is the process where the insurer assesses the risk of insuring an applicant based on their health history and current medical status, the absence of this process in guaranteed issue policies allows individuals to obtain insurance without the typically required health exams or questionnaires. This inclusiveness is particularly advantageous for seniors or those with ongoing health challenges. The other choices pertain to elements that do not define this type of policy as directly. Premium payments are still required, though typically guaranteed issue policies might have higher premiums to account for the higher risk that insurers undertake. Age limits may vary based on the specific product, and restrictions on beneficiaries are generally not a defining feature of guaranteed issue policies either.