When an underwriter determines that an applicant's risk should be recategorized due to a health issue, this policy may be issued with what?

When an underwriter decides to recategorize an applicant's risk due to a health issue, it may lead to the issuance of a policy with an exclusion for the medical condition. This approach is taken to manage the insurer's risk while still providing the insured with coverage. By including an exclusion for the specific health issue, the insurance company limits its liability related to that condition, thereby protecting itself from potential claims that might arise due to the applicant's pre-existing health issue.

This type of exclusion effectively clarifies which specific circumstances are not covered under the policy, allowing the insurer to still provide coverage while recognizing the added risk associated with the applicant's condition. This practice is common in the insurance industry for applicants who present elevated risk profiles due to health concerns.