In the context of underwriting, what is one key reason for requiring medical examinations from applicants?

Requiring medical examinations from applicants is essential in underwriting primarily to assess pre-existing conditions. Underwriters need to have an accurate understanding of an applicant's health status to evaluate potential risks associated with insuring them. This assessment allows the insurer to make informed decisions about the applicant's coverage and determine appropriate premium rates based on their medical history.

While determining premium rates is a factor related to underwriting, it is directly influenced by the information gathered from medical examinations. Understanding pre-existing conditions enables underwriters to predict the likelihood of future claims and tailor the coverage to match the applicant's risk profile. Thus, assessing pre-existing conditions through medical exams forms a foundational part of risk evaluation in the insurance underwriting process.