Which of the following is true regarding health underwriting?

Health underwriting involves assessing an applicant's health status to evaluate the risk associated with providing life insurance coverage. The correct answer focuses on the impact of an individual's health history on premium costs.

Insurance companies utilize health history as a crucial factor in determining the likelihood of a policyholder filing a claim. If an applicant has a history of serious health issues, this can indicate a higher probability of illness or death, leading to increased premiums to offset the greater risk. Conversely, applicants with a clean health record may qualify for lower premiums due to the perceived lower risk associated with their life expectancy.

In the context of the other options, while occupations can influence underwriting decisions and may indirectly relate to health risks, they are not the sole criterion. Not all applicants are required to undergo medical exams, as this can vary based on the coverage amount and the insurer's policy. Lastly, age is a significant factor in underwriting, as it often correlates with health risks and mortality rates. Therefore, the emphasis on health history's role in affecting premium costs stands out as the accurate statement regarding health underwriting.