The fundamental principle of insurance underwriting is that the cost of health care can be predicted for
A) large populations.
B) people with specific medical conditions.
C) individuals with certain genetic markers.
D) people who are healthy.

Question

Quizplus · Accepted Answer

Insurance underwriting is based on the principle of risk pooling, where premiums paid by healthy individuals help cover the cost of healthcare for those who are sick. As such, the cost of health care for large populations can be predicted and spread out among all individuals in the pool. Predicting the cost of health care for individuals with specific medical conditions or certain genetic markers is difficult, as these individuals may require more costly treatments and interventions. The cost of health care for individuals who are healthy is also unpredictable, as they may unexpectedly develop illnesses or injuries that require medical attention.

The Fundamental Principle of Insurance Underwriting Is That the Cost