Moratorium underwriting is also referred to as what?

Moratorium underwriting is correctly referred to as point of claim underwriting because it involves assessing a person's health status at the moment when a claim is made rather than during the initial application process for insurance coverage. In this approach, coverage may be provided immediately, but the insurer retains the right to review the health history of the insured when a claim occurs. This method allows individuals who may not qualify for traditional underwriting due to pre-existing conditions to obtain insurance. The examination of the risk is deferred until a claim is submitted, creating a point in time when the insurer evaluates the applicant's health.

This concept is particularly useful in healthcare insurance, where applicants may fear that their current health status could hinder their ability to secure coverage. It contrasts with other underwriting methods that assess risk upfront based on health information provided during the application. Enjoying its benefits can often make insurance more accessible for certain populations. Other terms associated with underwriting in insurance contexts focus more on criteria evaluated at the outset or guarantee coverage irrespective of health status, which does not align with the moratorium approach.