Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
When underwriting a large employer group (over 100 employees), an insurer most heavily relies on:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Large employer groups are typically experience-rated: the insurer prices coverage primarily on the group's own past claims experience, demographics, and industry characteristics, because a large pool is statistically credible. Small groups, by contrast, are community-rated because a small group's claims are not credible. The A&H examination objectives distinguish large-group underwriting considerations (occupational class, size, and prior claims) from small-group rules.
Why the other options are wrong
- B) Individual medical questionnaires are a feature of individual or small-case underwriting; large groups are priced on group experience.
- C) Community rating is the small-group and individual-market method, not the basis for rating large employer groups.
- D) Medicaid eligibility is a public program criterion and is not used to underwrite private employer groups.
Memory hook
Big group = your own track record sets your rate. Experience rating needs a crowd to trust.