State RegulationsAZ specificDifficulty 2/5
An insurer refuses to issue a health policy because the applicant was treated for cancer years ago, and separately declines a life application citing the same history. Which statement is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The Affordable Care Act (45 CFR 146, 147; 42 USC 300gg-300gg-91) prohibits preexisting-condition underwriting in health coverage, so the health refusal violates the Act. Life insurance, however, is not governed by the ACA, and life underwriting remains subject to the ordinary rules that govern that product. Knowing where the Act stops is as important as knowing what it mandates.
Why the other options are wrong
- A) the Act reaches health coverage only, so the life refusal is not an ACA violation.
- C) the Act's guaranteed-issue and preexisting-condition rules belong to health coverage, not life.
- D) the health refusal is squarely regulated by federal law under the ACA.
Memory hook
ACA shields health, not life.