When might evidence of insurability be required?

Evidence of insurability is often required when an individual is transitioning from a group policy to an individual policy after quitting their job. This is because a group policy usually covers individuals without requiring proof of good health due to the pooling of risk among many members. However, once a person moves to an individual policy, the insurer wants to assess the risk associated with insuring that particular individual. This may include reviewing medical history and potentially requiring medical examinations to determine if they qualify for coverage and at what premium rate.

In the context of the other options, it’s important to understand why they do not typically require evidence of insurability. During policy renewal, coverage is usually extended without the need for re-evaluation, as long as policy premiums are paid and there are no significant changes to the insured's health status. Regarding claims, evidence of insurability is not a factor; it is the terms of the policy that govern coverage at the time of the claim. Lastly, requiring evidence of insurability only for children under the policy is not a standard practice; typically, children are covered under their parents' policies without additional requirements for proof of insurability.