What may an insurer require when underwriting a group health insurance policy for an employer with five employees?

In the context of underwriting a group health insurance policy, an insurer may require evidence of insurability from individual employees, particularly when there is a smaller group, such as one with five employees. This requirement helps the insurer assess the health status and risk level of each individual, especially if the group is relatively small and the overall risk can be significantly impacted by the health of just a few individuals.

Insurers often implement this requirement to mitigate the potential of adverse selection, where individuals with higher health risks are more likely to seek insurance coverage. By obtaining evidence of insurability, insurers can make better-informed decisions about premium rates and coverage options for the group.

Options like medical history reports may provide information for underwriting purposes but are typically included as part of the evidence of insurability process rather than a standalone requirement. Application fees do not directly relate to the underwriting decision itself, as these are more administrative in nature. Employer credit checks might be relevant for assessing the financial standing of the employer but do not pertain to the individual health risks that underpin group health insurance underwriting decisions.