South Carolina Insurance Practice Exam

Which of the following is NOT typically a source of underwriting for life or health insurance?

1. Medical records

2. Disclosure authorization response

3. Financial history

4. Application details

The correct answer is: Disclosure authorization response

In the context of underwriting for life or health insurance, the correct response is derived from the understanding of what constitutes the sources of information typically used in the underwriting process. Medical records provide critical insights into an applicant's health history, allowing underwriters to assess any pre-existing conditions or risk factors that may influence the applicant’s eligibility or premium rates. Financial history aids underwriters in determining the applicant's financial stability and ability to pay premiums, which is essential for evaluating risk. Application details are fundamental to the underwriting process, as they include personal information, health questions, and lifestyle choices that impact the risk assessment. The authorization response, while it plays a role in granting permission for the insurer to access medical records, is not a primary source of underwriting information. Rather, it is a procedural element that facilitates access to the medical records that are indeed utilized during the underwriting process. Therefore, this response does not provide direct information about the applicant's risk profile like the other options do. This makes it distinct from traditional underwriting sources that assess both health and financial risk factors.