Maryland Life and Health Insurance License Practice Exam

Which factor is NOT typically considered in the underwriting of life insurance?

1. Occupation

2. Health history

3. Marital status

4. Age

The correct answer is: Marital status

In underwriting life insurance, underwriters evaluate various risk factors to determine the eligibility for coverage and the premium rates. Among these, occupation, health history, and age are significant considerations. Occupation is assessed because it can indicate potential risks associated with the applicant's job, such as exposure to hazardous conditions or high-stress environments. Health history is critical since an individual’s past and current health conditions can significantly affect mortality risk. Age is also a fundamental factor as it correlates inversely with life expectancy; typically, younger individuals pay lower premiums than older ones. Marital status, while it may provide some context about lifestyle and potential dependents, is not a standard criterion in the underwriting process. It does not directly influence the applicant's life expectancy or risk profile in the way that other factors do. Thus, while marital status may be collected for demographic purposes, it is not typically a critical element in the decision-making process for underwriting life insurance.