CMFAS HI Pricing & Underwriting question: group Health Insurance underwriting

CMFAS HIPricing & Underwriting

In group Health Insurance underwriting, what does the 'free cover limit' mean?

A The maximum cover each group member can get without a health declaration
B A waiver of the entire group premium during the plan's first policy year
C The maximum number of members a group may enrol without individual underwriting
D The share of the premium paid by the employer rather than by the employees

Show the answer and explanation

Answer: A. The maximum cover each group member can get without a health declaration

The free cover limit is the maximum coverage an insurer will grant each group member without asking for a health declaration. Any sum assured above the free cover limit must be underwritten (e.g. medical exams/tests) before that excess coverage is granted.

Common mistake

Sum assured exceeding the free cover limit is not automatically covered — the excess must still be underwritten.

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CMFAS HI Pricing & Underwriting question: group Health Insurance underwriting

Answer: A. The maximum cover each group member can get without a health declaration

Common mistake

Related CMFAS HI questions

CMFAS HI Pricing & Underwriting question: group Health Insurance underwriting

Answer: A. The maximum cover each group member can get without a health declaration

Common mistake

Related CMFAS HI questions