Tennessee Insurance Practice Exam

Which factor does NOT play a role in underwriting a life insurance policy?

1. Age

2. Health status

3. Marital status

4. Occupation

The correct answer is: Marital status

In the underwriting process for life insurance policies, several factors are considered to assess risk and determine eligibility for coverage. These include age, health status, and occupation. Age is critical because it correlates with life expectancy; younger individuals generally pose a lower risk compared to older applicants, who are more likely to experience health issues. Health status is also vital, as underwriters evaluate medical histories, conditions, and lifestyle choices (like smoking) to gauge potential future claims. Occupation can impact risk assessment as well; hazardous jobs can increase the likelihood of accidents or health-related issues, thus affecting the risk profile. Marital status, while it may provide some sociological insight and demographic context, does not directly influence the assessment of an applicant’s risk in the same way that the other factors do. Therefore, it is not a significant variable in the underwriting process for life insurance policies.