Massachusetts Health & Accident Insurance Practice Exam

Which factor is considered under "Application Errors" in field underwriting?

1. age discrepancies

2. incomplete forms

3. both a and b

4. none of the above

The correct answer is: both a and b

In field underwriting, "Application Errors" can significantly impact the assessment of a proposed insured's risk and eligibility for coverage. Among the factors contributing to application errors, age discrepancies are crucial because an applicant's age can affect the underwriting process, including premium calculations, eligibility for certain policies, and coverage limits. If an application inaccurately reflects the applicant's age, it may lead to inappropriate decisions regarding risk. Similarly, incomplete forms are also a significant consideration in field underwriting. An incomplete application can prevent the insurer from gathering all the necessary information required to make an informed underwriting decision. Missing information might lead to misunderstandings about the applicant's health status, lifestyle, or other critical risk factors. Thus, both age discrepancies and incomplete forms fall under the umbrella of application errors. Recognizing and addressing these factors is essential for ensuring that the underwriting process is accurate and effective. This thorough understanding helps in the correct evaluation of the applicant's risk and the determination of appropriate coverage terms.