What type of underwriting determines rates based on health and occupation for individual policies?

Individual underwriting is the process that evaluates an applicant's health, medical history, lifestyle choices, and occupation to determine eligibility for insurance coverage and to set premium rates for individual policies. This method focuses on the unique characteristics of each applicant, allowing insurance companies to tailor their rates based on the specific risk that person represents.

When assessing individual applications, underwriters consider factors such as pre-existing conditions, the applicant's occupation (which can influence risk levels), and overall health status. This detailed analysis is vital for establishing the most accurate premium rates for individuals, as it reflects the likelihood of an applicant needing to file claims based on their personal circumstances.

In contrast, group underwriting generally applies to policies covering multiple individuals, such as employer-sponsored health plans. In those cases, the insurer evaluates the overall risk of the entire group rather than individual members. Premium underwriting is not a standard classification in insurance practices and doesn't center solely on health or occupation, while mandatory underwriting does not exist as a recognized term in standard underwriting categories.