Final answer:
When approving an application for health insurance, an underwriter will consider the applicant's medical history as it is a key indicator of future healthcare needs and potential insurance costs. Factors like race, marital status, and educational background are not legally or ethically appropriate and do not directly relate to the risk of health expenses.
Step-by-step explanation:
An underwriter considering an application for health insurance will primarily be interested in factors that can help assess the risk and potential cost associated with providing coverage. The most relevant of the options provided is the applicant's medical history. This is because a person's past and current health conditions are strong indicators of their potential need for future medical care, which directly impacts the risk an insurer would take in offering them insurance.
The other factors mentioned—applicant's race, marital status, and educational background—are generally not considered by underwriters for health insurance because they do not directly relate to the risk of health expenses. Indeed, using race as a factor in the underwriting process would be both unethical and illegal, as it constitutes discrimination. Furthermore, the medical history is especially relevant due to the phenomenon of adverse selection, which occurs when those with underlying health issues are more likely to seek insurance coverage than healthier individuals, potentially leading to higher costs for the insurer if not managed correctly.