What Is Health Questions (Knock-Out Questions)?

Why it matters

Simplified issue and final expense plans rely on them in place of exams. Typical topics include recent hospital stays, cancer, heart conditions, and use of oxygen. Answer exactly as asked. If one answer disqualifies you, another carrier or a guaranteed issue plan may still be available. Wording varies by carrier.

Source: naic.org

Where we use this term

Related terms

Underwriting: Underwriting is the process a carrier uses to review an application, judge the risk, and decide whether to offer coverage and at what price. It looks at health, age, habits, and history.
Simplified Issue Life Insurance: Simplified issue life insurance is coverage approved using a short health questionnaire and database checks, with no medical exam. A few health answers can lead to a decline, so approval is not guaranteed.
Guaranteed Issue Life Insurance: Guaranteed issue life insurance is coverage that accepts applicants without health questions or a medical exam. Approval is guaranteed within the age limits, but the face amount is small and a waiting period usually applies.
Decline: A decline is a carrier's decision not to offer life insurance to an applicant after underwriting. The carrier judges the risk too high for the plan applied for.
Misrepresentation: Misrepresentation is a false or misleading statement about a material fact, made by an applicant or by an agent. In insurance, it can affect coverage, claims, and the agent's license.

All 241 terms

Why it matters

Where we use this term

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