In health insurance, what does the term "underwriting" refer to?

Underwriting in health insurance specifically refers to the evaluation of risk and determining premium rates. This process involves assessing an applicant's health history, lifestyle, and other factors to establish the level of risk they represent to the insurer. By evaluating these elements, underwriters can make informed decisions about whether to offer coverage and, if so, at what premium rate.

The underwriting process is critical because it helps insurers manage their financial risk and ensures that they can remain solvent while providing coverage to policyholders. Insurers need to accurately price their products based on the associated risks to maintain a balanced portfolio and meet regulatory requirements.

In contrast, the other concepts mentioned pertain to different aspects of health insurance: setting coverage limits is related to policy terms, the claims review process involves processing and verifying the claims submitted after a medical event, and selling the policy focuses on the marketing and distribution of insurance products. Each of these plays a role in the broader context of health insurance but does not define the underwriting process specifically.