Certified Financial Consultant (CFC) Practice Exam

Under what basis may applicants who are blind be rated substandard for life insurance?

1. Only on basis of information unrelated to their blindness

2. On a case-by-case basis regardless of their condition

3. Only if they have other health issues

4. None, they cannot be rated substandard

The correct answer is: Only on basis of information unrelated to their blindness

The basis for rating applicants who are blind as substandard for life insurance revolves around the underwriting process and the criteria used to assess risk. When considering an applicant's blindness, insurers typically evaluate whether factors associated with the applicant's overall health, rather than their blindness alone, warrant a substandard rating. Selecting information unrelated to the blindness means that the insurer is focused on additional health factors, lifestyle choices, or conditions that may pose a higher risk for mortality or morbidity. For instance, if a blind applicant also has other medical issues, such as heart disease or diabetes, the insurer may consider these factors in their underwriting decision. Thus, if the applicant's blindness does not present any additional health risks related to their overall well-being, they should not be automatically rated substandard. This approach helps ensure that blind applicants are not discriminated against solely because of their condition, allowing for a fair assessment that considers the full picture of their health. It promotes inclusivity within the underwriting process while still enabling insurers to manage their risk effectively based on comprehensive health evaluations.