Illinois Health Insurance Practice Exam

What type of questions are unacceptable on health insurance applications to base premiums?

1. Past medical history and ethnicity

2. Gender and occupation

3. Age and family composition

4. Tobacco use and geographic region of residency

The correct answer is: Past medical history and ethnicity

Using past medical history and ethnicity as the basis for determining insurance premiums is unacceptable due to potential discrimination issues. Insurance regulations often prohibit using certain personal characteristics that can lead to biased practices. While assessing risk is essential in insurance, certain factors, particularly those tied to a person's background, such as ethnicity, can unfairly disadvantage specific groups and violate principles of fairness and equality. The other categories, such as gender, occupation, age, family composition, tobacco use, and geographic region, may provide relevant information for assessing risk and are typically allowed within the framework of underwriting guidelines. They can be tied more directly to the likelihood of health issues or claims, which is why they may be deemed acceptable for influencing premiums in most cases.