Reasons underwriter may require a medical exam

• A. A routine renewal requirement
• B. The policy term length
• C. The applicant's credit score
• D. Policies with higher amounts of coverage

Answer: (D)

When deciding insurability, the amount of coverage drives how much risk the insurer is taking on. A medical exam is a tool to verify current health and uncover any conditions that could increase the insurer’s risk, especially when the policy has a large face amount. The higher the potential payout, the more important it is to have up-to-date, objective health data to price the policy accurately and prevent adverse selection.

That’s why larger policies commonly require a medical exam. Routine renewals aren’t automatically tied to medical exams, and the length of the policy or a borrower’s credit score don’t by themselves determine whether an exam is needed.