Arkansas Life and Health Insurance Practice Exam

Who ultimately determines the insurability of an applicant?

1. Insurance Agent

2. Insurer's home office underwriter

3. State Insurance Department

4. Applicant

The correct answer is: Insurer's home office underwriter

The correct answer is the Insurer's home office underwriter. This individual assesses the risk associated with insuring the applicant by evaluating various factors such as the applicant's medical history, age, occupation, and other relevant information. The underwriter uses this information to determine the insurability of the applicant and to set appropriate premium rates. The insurance agent assists in the application process but does not have the final authority in determining the insurability of an applicant. The State Insurance Department oversees insurance regulations and compliance but does not make individual insurability decisions. The applicant provides information for underwriting purposes but does not ultimately determine their own insurability.