HIV testing is used to determine insurability.

• A. Effective date and term of coverage
• B. The insurability of the proposed insured
• C. Whether an insurable interest exists
• D. The type of policy that will be issued

Answer: (B)

In life insurance underwriting, HIV testing is used to assess insurability—the applicant’s health status and mortality risk. The underwriter reviews the test results to decide whether the person is an acceptable risk and, if so, at what premium or with what rating. If the results indicate higher risk, the applicant may be declined, charged a higher premium, or placed in a substandard class, which directly affects insurability.

This doesn’t set the effective date or term of coverage, which are determined by the policy’s issued terms and the underwriting decision. It also isn’t about whether an insurable interest exists—that concept relates to ownership and financial interest at the time of policy purchase. Finally, while the results can influence the choice of policy type that might best fit the applicant, the test itself doesn’t determine the policy type; that decision follows after insurability is assessed.