Question

How does group underwriting differ from that of individual insurance, based upon the group characteristics and makeup?

a) Group underwriting is more lenient, while individual underwriting is stricter.
b) Group underwriting considers the group's characteristics, not individual health.
c) Individual underwriting is more cost-effective than group underwriting.
d) Group underwriting is solely based on individual health assessments.

Answer 1

b) Group underwriting considers the group's characteristics, not individual health.

Step-by-step explanation:

The correct answer is b) Group underwriting considers the group's characteristics, not individual health.

In group underwriting, the insurance company evaluates the risk of the entire group rather than assessing individual health. This means that the insurance premium for the group is determined based on the collective risk factors and characteristics of the group, such as age, occupation, and demographics.

Individual underwriting, on the other hand, focuses on assessing the health and risk factors of each individual separately. This typically involves a more detailed evaluation of medical history, lifestyle choices, and pre-existing conditions.