Which statement describes a guaranteed issue policy?

Which statement describes a guaranteed issue policy?

• A. It has no medical underwriting
• B. It requires medical underwriting
• C. It excludes preexisting conditions
• D. It is non-renewable

Answer: (A)

Guaranteed issue means the insurer cannot deny coverage or require medical questions to determine eligibility. Coverage is issued to anyone who meets basic eligibility, regardless of health status, so there’s no medical underwriting involved. Premiums are set by standard rates and the policy must be issued to the applicant, rather than being declined or priced higher due to health conditions. The other statements don’t define guaranteed issue: requiring medical underwriting would be the opposite, excluding preexisting conditions suggests underwriting or denial based on health, and non-renewable relates to renewal rights rather than how the policy is issued.

Guaranteed issue means the insurer cannot deny coverage or require medical questions to determine eligibility. Coverage is issued to anyone who meets basic eligibility, regardless of health status, so there’s no medical underwriting involved. Premiums are set by standard rates and the policy must be issued to the applicant, rather than being declined or priced higher due to health conditions. The other statements don’t define guaranteed issue: requiring medical underwriting would be the opposite, excluding preexisting conditions suggests underwriting or denial based on health, and non-renewable relates to renewal rights rather than how the policy is issued.