Medical Expense✓ Verified · outline & fact-checked · Sep 2026Difficulty 1/5
The requirement that health insurers accept every eligible small employer that applies for coverage is known as:
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Guaranteed issue means an insurer must accept every eligible applicant for coverage without requiring evidence of insurability or denying based on health status. In the small group market, insurers may not reject a small employer group or any eligible employee. This rule, mandated by the Affordable Care Act and reflected in California's small group market, prevents insurers from cherry-picking healthy groups and ensures that coverage is available to all small employers that meet eligibility requirements.
Why the other options are wrong
- B) Guaranteed renewability means the insurer must continue coverage as long as premiums are paid; it does not require accepting new applicants.
- C) Noncancellable coverage means the insurer cannot cancel and cannot raise premiums while the policy is in force; it is a renewability feature, not an acceptance requirement.
- D) Open enrollment is a defined period during which eligible individuals may enroll, not the duty to accept every group that applies.
Memory hook
Guaranteed issue = insurers cannot say no at the door. Guaranteed renewable = insurers cannot show you out later.