How do group insurance plans differ from individual plans regarding underwriting?

Group insurance plans are typically designed to streamline the underwriting process through risk pooling, which is the main reason why option B is correct. In a group plan, the insurance provider assesses the health risks of the group as a whole rather than evaluating each individual member's health history extensively. This approach allows for less stringent underwriting, as the collective risk of the group is calculated, making it easier to offer coverage to members who may have health issues that could complicate individual underwriting.

The concept of risk pooling means that the risks of all members are combined, which can lead to a more predictable cost of claims for the insurer. This is advantageous for both the insurer and the insured, as it often results in lower premiums for group plans compared to individual plans. Additionally, it encourages participation and coverage for a wider range of individuals since they are not scrutinized based on individual health information as rigorously.

In contrast, the other options highlight factors that do not accurately represent the underwriting processes associated with group insurance plans. Contrary to saying that group plans require more individual health information or have no underwriting requirements, it's essential to understand that while some basic health information may be collected, it is typically minimal compared to individual plans. The claim that group plans cost significantly more than individual plans does