Washington Life Producer Practice Exam

Which statement is true regarding a person applying for life or health insurance?

1. The applicant can be denied based solely on age

2. Medical history may be analyzed and reported

3. The application process is automatic

4. Only current health status is considered

The correct answer is: Medical history may be analyzed and reported

The correct answer highlights the significance of medical history in the life and health insurance application process. When an individual applies for insurance, insurers typically conduct a thorough evaluation that includes a review of the applicant's medical history. This information helps underwriters assess the risk associated with providing coverage, as it provides insight into past illnesses, treatments, surgeries, and pre-existing conditions that could affect the applicant's health and longevity. Insurers may require applicants to provide detailed health information, which is then analyzed to determine eligibility and premium rates. This process ensures that the insurance company can accurately evaluate the risk they are willing to take on by insuring the applicant. Other options do not accurately reflect standard practices in the insurance application process. Factors such as age, only current health status, or an assumption of an automatic process are not comprehensive enough to encapsulate the full scope of what insurers consider when evaluating an application. Understanding the role of medical history is crucial for applicants to grasp how their health can impact their insurance options.