Florida Health Insurance
Insurers make money in two ways: (1) through underwriting, the formation by which insurers select the risks to insure and decide how much in premiums to sortie for accepting those risks and (2) by investing the premiums they collect from insureds.
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An indemnification underwriter's job is Florida Health Insurance to evaluate a given risk as to the likelihood that a loss will occur |
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| Any item that causes a greater likelihood of destitution should theoretically be charged a higher rate |
| This basal principle of managed care must be followed if health plan companies are to remain solvent |
| Thus, "discrimination" against (i.e., differential treatment of) potential insureds in the risk evaluation and premium-setting process is a decisive by-product of the fundamentals of allowance underwriting |
| For instance, insurers charge older people significantly deficient premiums than they outbreak younger people for term life insurance |
| Older people are thus treated differently than younger people (i.e., a distinction is made, discrimination occurs) |
| The rationale for the differential treatment goes to the heart of the risk a life insurer takes: Old people are likely to die sooner than boylike people, so the risk of loss (the insured's death) is greater in any given period of bout and therefore the risk premium must be beyond to cover the greater risk |
| However, treating insureds differently when there is no actuarially sound deduction for doing so is unlawful discrimination. |
