Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
When underwriting a large group health plan, an insurer most heavily relies on:
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
For large groups, underwriting is based primarily on the group's aggregate experience: prior claims history, group size, and the occupational classes represented. Because a large group spreads risk across many lives, individual medical evidence is generally not required, and coverage is issued based on the group's overall loss experience. Small groups, by contrast, are subject to more standardized rules and community rating. Experience rating is what makes large-group coverage attractive and stable.
Why the other options are wrong
- A) Individual medical questionnaires are typical of small group and individual underwriting; large groups rely on aggregate claims data.
- C) The health of the owner is not the basis for pricing a large group, which uses the experience of the entire group.
- D) Dependent age and gender profiles are part of rating inputs, but the core of large group underwriting is the group's own claims experience and composition.
Memory hook
Large groups are rated on their own track record: claims, size, occupations. No one is put under the microscope.