Massachusetts Health & Accident Insurance Practice Exam

Which factor is NOT considered a risk factor in evaluating life insurance applicants?

1. Sex

2. Occupation

3. Criminal history

4. Age

The correct answer is: Criminal history

In evaluating life insurance applicants, criminal history is generally not considered a risk factor in the same way that sex, occupation, and age are. Sex can affect life expectancy and health risks—actuarial data shows differences in mortality rates between genders, leading insurers to take this factor into account when assessing risk. Similarly, an applicant's occupation is essential because certain jobs may expose individuals to higher levels of risk or hazards that could affect their longevity. Age is also a critical factor, as it directly correlates with mortality risk; older applicants typically face higher premiums due to increased health risks associated with aging. While criminal history can certainly influence an insurer's view of an applicant, it doesn't have the same statistical backing in determining mortality risk compared to the other factors. Thus, it is not a primary consideration in the traditional risk assessment process for life insurance.