18.1 Major Risk Factors
The key factors evaluated in the health insurance underwriting process are typically the same as in all insurance underwriting processes, with a few exceptions. For instance, in disability income underwriting, income is the most important factor. In health insurance, medical history and occupation are the most important.
Group health insurance underwriting is similar to group life plans. In general, the group is evaluated as a whole, not individually. Depending upon the group's risk profile, the entire group is either accepted or denied coverage.
Insurance companies look at small groups more closely. If there is one "very risky" person among the group, that group as a whole may be required to make higher premium payments to compensate the insurer for the risk. Therefore, insurance companies reserve the right to have individual underwriting within group policies.
