Health Insurance Mastery Practice Exam

When is a Statement of Continued Good Health required for a health insurance applicant?

1. When the application is submitted online

2. When the premium is not paid until delivery

3. When the applicant has a pre-existing condition

4. When the policy is renewed

The correct answer is: When the premium is not paid until delivery

A Statement of Continued Good Health is typically required when the premium is not paid until the policy is delivered. This requirement serves as a safeguard for the insurance company, ensuring that the applicant's health status has not changed significantly from the time of application until the time the policy is delivered. The statement confirms that the applicant is in good health at the point they are expected to take effect of the coverage, which minimizes the insurer’s risk associated with any changes in health that may have occurred in the interim. Other scenarios, while they may seem relevant, do not necessitate a Statement of Continued Good Health. For instance, submitting an application online does not inherently require a health statement since the procedure for processing the application remains the same regardless of the method of submission. The presence of a pre-existing condition may raise concerns during the underwriting process but does not create a blanket requirement for the health statement. Additionally, when a policy is renewed, the health status of the policyholder may be evaluated, but this is typically done through the renewal processes set by the insurer, not necessarily requiring a new Declaration of Continued Good Health unless there are specific changes or conditions outlined by the insurer.