West Virginia State Life Insurance Practice Exam

What is the purpose of requiring an applicant's signature on a health insurance application?

1. To confirm identity

2. To attest that the statements on the application are accurate to the best of the applicant's knowledge

3. To initiate the underwriting process

4. To release medical records

The correct answer is: To attest that the statements on the application are accurate to the best of the applicant's knowledge

The purpose of requiring an applicant's signature on a health insurance application is primarily centered around attesting that the statements made on the application are accurate to the best of the applicant's knowledge. This signed declaration serves as a legal affirmation that the information provided is truthful and complete. It helps ensure the integrity of the application process, which is essential for accurate risk assessment and underwriting by the insurer. By signing the application, the applicant acknowledges that they understand the importance of disclosing all relevant health information. This requirement is crucial because inaccuracies or omissions could lead to complications, such as denial of claims or policy rescission later on if the insurer discovers misrepresentation. While the signature also supports other processes, such as confirming identity and initiating underwriting, these are secondary to the primary legal affirmation regarding the accuracy of the provided information. The release of medical records, although necessary at times, is typically a separate process that requires additional consent and is not the main reason for the signature on the application itself. Therefore, option B correctly captures the essential purpose of requiring the signature.