Why are medical exams typically conducted at the insurer's expense?

Medical exams are typically conducted at the insurer's expense primarily to ensure thorough evaluations of an applicant's health status. Insurers need accurate and comprehensive information to assess the risk associated with insuring an individual. By covering the cost of the medical examinations, insurers are able to obtain objective data from a qualified medical professional, which can help them make informed underwriting decisions. This practice allows the insurer to evaluate the potential risk more accurately, which is critical in determining premiums and coverage options for policyholders.

The other options do not align with the primary purpose of conducting medical exams at the insurer's expense. While limiting the number of applicants, reducing costs, or expediting the application process may be considerations in a broader context, they do not encapsulate the essential reason for having thorough health evaluations. The emphasis on thorough evaluations reflects the commitment of insurers to ensure they are providing coverage based on a clear understanding of an applicant's health, ultimately leading to better risk management and more sustainable insurance practices.