Underwriting procedures are most restrictive in which type of health insurance?

• A. Accidental
• B. Individual
• C. Group
• D. Employer-paid

Answer: (B)

Underwriting evaluates how much risk a person brings and what premium they should pay. When coverage is sold to individuals, there’s no large pool to share risk, so each applicant’s health and history must be scrutinized in detail, making underwriting most restrictive. In group plans, the risk is spread across many people, so insurers rely on the group’s overall experience and can use lighter underwriting. Employer-paid plans are typically group plans, with even less need for strict medical screening due to the employer–employee risk pool. So the most restrictive underwriting occurs in individual health insurance.