Question

What is the reason for declining coverage for an individual with severe medical conditions?

a.

To avoid legal action from the insured individual

b.

To increase profits for the insurance company

c.

Due to the high risk of an early claim

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (c).Due to the high risk of an early claim Explanation:Underwriters may decline coverage for an individual with severe medical conditions because the risk of an early claim is high, which may result in a financial loss for the insurance company.

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Q. What is the reason for declining coverage for an individual with severe medical conditions?
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