Illinois Health Insurance Practice Exam

What happens if there are errors or changes on a health insurance application?

1. Immediate rejection

2. No impact on coverage

3. Underwriter may request corrections and approval

4. Automatic premium increase

The correct answer is: Underwriter may request corrections and approval

The scenario presented involves the handling of errors or changes on a health insurance application. When such discrepancies arise, it is common for underwriters to assess the situation; they typically may request corrections to ensure that the application accurately reflects the applicant's information. After these corrections are made, the underwriter will then review the updated application for approval. This approach allows the insurer to make informed decisions regarding coverage, based on accurate and complete information. It reflects the industry practice of striving for clear communication and accuracy, which benefits both insurers and policyholders. Immediate rejection and automatic premium increases are usually not standard responses to errors on an application, as insurers generally prefer to resolve issues rather than deny coverage outright. Similarly, stating that there would be no impact on coverage overlooks the importance of accuracy in underwriting, which is critical for assessing risk.