Arizona Life and Health Practice Exam

Which of these is NOT used as selection criteria in the underwriting process of a life insurance application?

1. Age

2. Health History

3. National Origin

4. Occupation

The correct answer is: National Origin

In the underwriting process for life insurance, various criteria are utilized to assess the risks associated with an applicant. The primary selection criteria include age, health history, and occupation, as these factors help the underwriter determine the likelihood of the applicant passing away during the coverage period. Age is a critical factor because it significantly influences mortality risk; younger individuals generally pose a lower risk than older individuals. Health history is equally important as it provides insight into pre-existing conditions, lifestyle choices, and family medical history, all of which inform the underwriting decision. Occupation also plays a role, as certain jobs may carry higher risks than others, affecting the overall insurability and policy terms. On the other hand, national origin is not a valid selection criterion in the underwriting process. Underwriting must adhere to fair practices and regulations that prohibit discrimination based on factors such as race, ethnicity, or national origin. This ensures that all applicants are evaluated based on their individual risk profile and not on broad categories that do not have a direct correlation with mortality risk. Therefore, national origin is not used as a selection criterion in underwriting life insurance applications.