The correct answer is: B. Medical underwriting.
Medical underwriting is the process of evaluating an individual’s health and medical history to determine their eligibility for life insurance and the amount of coverage they may be able to purchase. This type of underwriting is more complex than non-medical underwriting, which is based on factors such as age, occupation, and lifestyle.
Medical underwriting typically involves a medical exam, which may include blood tests, urinalysis, and a chest X-ray. The results of the exam are used to assess the applicant’s risk of developing a serious illness or dying prematurely. The applicant’s medical history is also reviewed, including any previous hospitalizations, surgeries, or chronic conditions.
Based on the information gathered during the medical underwriting process, the insurer will determine whether to approve the application, and if so, the amount of coverage that will be offered. The applicant may also be required to pay a higher premium than someone who is considered to be a lower risk.
Here is a brief explanation of each option:
- Non-medical underwriting: This type of underwriting is based on factors such as age, occupation, and lifestyle. It is less complex than medical underwriting and does not require a medical exam.
- Field underwriting: This type of underwriting is used for small businesses and individuals who do not qualify for standard coverage. It involves a review of the applicant’s financial statements and credit history.
- Financial underwriting: This type of underwriting is used for large businesses and organizations. It involves a detailed review of the applicant’s financial statements, credit history, and business plan.