For what reason might additional medical information be requested during the underwriting process for key person insurance?

The underwriting process for key person insurance involves assessing the various risks associated with the individual whose life is being insured, primarily because their loss can significantly impact the company's financial health. By requesting additional medical information, underwriters aim to evaluate the applicant's health status and any pre-existing conditions that could affect their life expectancy. This is vital for determining the appropriate level of coverage and the risk profile of the individual, as certain health issues can lead to higher mortality risk, thus influencing premium rates and policy terms.

In case of other options, knowing the applicant's occupation may be relevant, but it is not the primary reason for the additional medical information request. Understanding the company's financial status is important for underwriting in general, but it does not directly correlate with the medical assessment of the key person. Finally, while verifying the insurance policy type is important, it does not necessitate additional medical information during the underwriting stage, as this is more related to the specifics of the policy being applied for. Therefore, the primary focus remains on establishing the risk associated with the individual.