Which statement about underwriting and Guaranteed Issue is true?

• A. Underwriting is not required if you meet Guaranteed Issue criteria.
• B. Underwriting is always required.
• C. Only for certain plans.
• D. Not applicable.

Answer: (C)

Underwriting is the process of evaluating an applicant’s health risk to determine eligibility and pricing. Guaranteed Issue means the insurer must offer coverage to applicants regardless of health status for that particular plan, so health conditions can’t be used to deny coverage or set higher rates for that plan.

But not every plan is guaranteed issue. Some plans are not guaranteed issue and do require underwriting, while others may offer guaranteed issue protections only in specific contexts or for certain product types. That’s why the correct statement is that underwriting occurs only for certain plans—there’s variability depending on the plan and the rules governing it. The other options imply underwriting is universal or irrelevant, which doesn’t match the real-world nuance.