Insurers cannot request a new assessment of health risks like pre-existing conditions for policy reinstatement, which helps prevent adverse selection and stabilizes insurance premiums.
For individual health insurance policies, an insurer may not request a new assessment of health risk factors such as pre-existing conditions or current health status for a policy reinstatement. This practice is typically prohibited to prevent adverse selection, where only high-risk individuals purchase or maintain insurance coverage, potentially leading to a destabilization of insurance markets. Following reforms such as the individual mandate, the need to guard against adverse selection has been reduced, allowing for more stable risk pools and affordable insurance premiums.