Florida Health Insurance Terms:
"What is Avocation?"

Avocation: This refers to either an occupation or an activity the insured participates in.

Life, health, disability, critical illness, and long term care insurance fall somewhere in between since some of the factors which impact a person's "insurability" and therefore their "risk classification" are not of their own doing. The fact that a person's father and grandfather both died of heart attacks in their early 60's certainly make these "risk factors" in determining what the individual's risk class should be. Nevertheless, with Group Insurance (both life and health) and some other forms of insurance, these risk factors are overlooked. Individual life and health forms of coverage have always used these factors but "risk classification" on fact, rather than on cause, has always been a part of the insurance underwriting process.

Insurance companies today underwrite risks based totally upon information which they can currently obtain from:

  • blood, urine, and lab findings
  • current medical history records
  • some basic family history information
  • financial information justifying the amount being applied for vocation and avocation risk information.

What concerns the insurance industry is a time in the not-too-distant future when persons who are applying for any form of insurance will have information that due to "privacy" concerns will not be available to insurance carriers. Persons then may be trying to obtain insurance coverage specifically because they have knowledge that their risk of developing a particular medical problem, condition, or disease, is much greater than the general population as a whole.

In insurance terms, this is known as "anti-selection". This means that individuals are able to "select against" the insurance company who might not have issued the coverage had they had access to the information that motivated the insurance applicant to apply for the coverage, or who might have charged extra for the extra risk involved.

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