General Insurance✓ Verified · outline & fact-checked · Sep 2026Difficulty 2/5
Which sequence best describes the underwriting process for an individual health insurance application?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The standard underwriting flow moves from application through evaluation to a decision: the completed application and supporting evidence of insurability (medical records, exams, MIB reports, agent's report) are reviewed; the risk is classified; and the insurer then issues, rates, or declines the coverage. The sequence matters because each step feeds the next, and the decision is made only after classification.
Why the other options are wrong
- B) The policy is not issued before the application is evaluated, and premiums are not refunded as part of the underwriting process.
- C) Underwriting does not begin with cancellation, and a decided application is not discarded — it is issued, rated, or declined.
- D) Individual health coverage is generally not bound at application, and a medical exam is not waived permanently just because one is not required initially.
Memory hook
Apply, evaluate, classify, decide. Underwriting is a four-step assembly line, not a fire drill.