Suppose you go to buy a life insurance policy and the underwriter asks you to allow the company access to all of your medical records.What is the underwriter concerned about?

Question

Quizplus · Accepted Answer

The underwriter is concerned about adverse selection. Access to medical records helps the insurance company assess the risks associated with insuring a person. If the insured has a preexisting condition or a health history that suggests higher risk, the insurance company may offer higher premiums or deny coverage altogether. Without access to medical records, the insurance company is assuming more risk, which may lead to adverse selection.

Suppose You Go to Buy a Life Insurance Policy and the Underwriter