What is the primary purpose of health insurance underwriting?

The primary purpose of health insurance underwriting is to assess risk and ensure appropriate coverage. Underwriting involves evaluating the health status, medical history, and other factors relevant to an individual's health risk. This assessment allows insurers to determine the likelihood of future claims, which directly influences the terms and pricing of the insurance policy.

By carefully analyzing this information, underwriters can offer coverage that is suitable for the policyholder's needs while also protecting the insurer from excessive risk. This process is essential for maintaining the financial stability of insurance plans and ensuring that policyholders receive the coverage they require without placing undue strain on the insurer's resources.

The other options, while related to aspects of health insurance, do not capture the primary focus of underwriting. For example, determining premium rates is a byproduct of the risk assessment but isn’t the primary aim itself. Similarly, promoting health maintenance and settling claims efficiently pertain more to broader health insurance operations and policy features rather than the specific function of underwriting.