In group life insurance, an insurer might accept an exposure who could not meet the insurer's standards for individual life insurance.

Question

Quizplus · Accepted Answer

The underwriting standards for group life insurance are usually less stringent than those for individual life insurance. This is because the risk is spread across a large group of people rather than an individual. Additionally, group life insurance is often provided by an employer as a benefit, so the insurer may be more likely to accept the exposure in order to maintain the relationship with the employer.

In Group Life Insurance, an Insurer Might Accept an Exposure