Washington Life Producer Practice Exam

All of these are considered key factors in underwriting life insurance EXCEPT?

1. Employment history

2. Credit score

3. Marital status

4. Health history

The correct answer is: Marital status

In underwriting life insurance, key factors are used to assess the risk associated with an applicant's life and determine premium rates. Employment history, credit score, and health history are all significant aspects that underwriters evaluate. Employment history provides insight into job stability and potential risks associated with one's occupation, which can affect mortality rates. A credit score serves as an indicator of a person's financial responsibility, which can correlate with lifestyle choices and overall risk in relation to the insurance policy. Health history is arguably the most critical factor since it offers a direct view of an applicant's health conditions and potential life expectancy. Marital status, while it can sometimes provide indirect context regarding personal circumstances or lifestyle choices, is not a primary factor in life insurance underwriting. It typically does not directly impact the risk calculation, unlike the other elements that have a more pronounced bearing on an individual's mortality risk and financial behavior. Thus, chosen appropriately for this context, marital status stands out as the least significant in the underwriting decision-making process.