Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

When applying for life or health insurance, the review of the medical history from the insured is crucial as it helps the insurer assess the applicant's health condition and potential risks associated with insuring that individual. This medical history usually includes past illnesses, treatments, surgeries, and any chronic conditions, which directly impact the underwriting process.

By evaluating the medical history, insurers can determine the likelihood of the applicant needing healthcare services in the future and calculate the appropriate premium rates. It also helps identify any existing health risks that could influence their decision to provide coverage or impose specific policy exclusions.

As for the other options, while they may play a role in the overall picture of an applicant's profile, they are not typically the primary focus during the insurance application process for life and health coverage. Insurer payment history pertains more to claims rather than underwriting. Financial records of a business are relevant in business insurance policies but are less significant for personal life and health insurance. Minor claims may be a consideration but don't usually carry the weight of the applicant's medical history in risk assessment during the insurance application process.