Under guaranteed issue, which statement is true?

• A. The insurer can deny coverage to applicants based on health status.
• B. The insurer must offer coverage to applicants irrespective of health status
• C. No underwriting is ever required
• D. Coverage can be canceled mid-term at insurer discretion

Answer: (B)

Guaranteed issue means that health insurers cannot deny an application or impose a health-based waiting period; they must offer coverage to any applicant who applies, without regard to health status. This protects individuals with preexisting conditions and ensures access to insurance. You can think of it as the insurer agreeing to enroll anyone who meets the basic plan rules, rather than screening out sick applicants.

That’s why the statement about offering coverage irrespective of health status is the true one. Denying coverage because of health status would contradict guaranteed issue. Saying no underwriting is ever required is too strong a claim, since insurers may still use standard factors (like age or tobacco use) to set premiums or determine plan terms. And allowing mid-term cancellation at the insurer’s discretion would undermine guaranteed renewability and continuity of coverage.