The requirement by some life insurance companies that applicants must undergo medical examinations is an attempt on the part of the life insurance company to mitigate the problem of adverse selection by:

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Requiring medical examinations allows the life insurance company to collect information about the applicant's health status and medical history, which helps the company to assess the applicant's risk accurately. This information can help the company to avoid adverse selection, where individuals with higher risk are more likely to apply for insurance. By collecting information through medical examinations, the life insurance company can set appropriate premiums based on the individual's risk profile, which can help to prevent adverse selection.

The Requirement by Some Life Insurance Companies That Applicants Must