The cost of any required medical exams in the underwriting process is paid by the:

• A. Applicant
• B. Insurer
• C. Reinsurer
• D. Broker

Answer: (B)

Underwriting costs tied to medical exams are paid by the insurer. When a life insurance application is processed, the company orders a medical exam to gauge health and risk. That expense is part of issuing the policy and is borne by the insurer as a cost of doing business, not by the applicant (beyond the premium they ultimately pay for coverage). Reinsurers aren’t responsible for these initial underwriting costs, and the broker doesn’t pay for the medical exam—the insurer covers it to determine the appropriate premium and eligibility.