Final answer:
An underwriter will be very concerned about preexisting conditions because they can lead to higher medical expenses and destabilize the insurance pool.
Step-by-step explanation:
In addition to moral hazards, an underwriter will be very concerned about preexisting conditions. Preexisting conditions represent a significant concern for underwriters because these conditions are known to potentially lead to higher medical expenses. Those with preexisting conditions are more likely to utilize health care services, thereby increasing costs for insurance providers and potentially destabilizing the insurance pool. Chronic illnesses also can contribute to this destabilization, whereas temporary injuries and minor illnesses generally do not pose the same level of financial risk to insurers in the long term.