Which statement about applying for life or health insurance is true?

• A. The applicant's medical history may be analyzed and reported
• B. The applicant's medical history is never reported
• C. Medical history has no impact on underwriting
• D. The applicant's medical history may be analyzed and reported

Answer: (D)

Underwriting for life or health insurance relies on medical information to gauge risk. The insurer reviews the applicant’s medical history—gathered through questionnaires, medical exams, and records—and uses that information to determine eligibility, premium, and policy terms. That data may be analyzed and reported to the insurer and, when applicable, to third-party sources such as industry reporting bureaus. Because this reflects standard underwriting practice, the true statement is that the applicant's medical history may be analyzed and reported. Claims that it’s never reported or that medical history has no impact on underwriting aren’t accurate, since medical information directly affects risk assessment and pricing. Applicants generally consent to this sharing as part of the application process.