Individual Health Insurance Premium Written
Writing an individual health policy for a self-employed customer.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Premium Receivable (Individual Health) | Asset (+) | 2,400.00 | - |
| Written Premium — Individual Health | Revenue (+) | - | 2,400.00 |
💡 Accountant's Note
Individual health policies are more expensive per head than group schemes due to adverse selection risk. Medical underwriting (health declarations) is applied at inception.
Practitioner & Systems Framework
💻 ERP Architecture
Individual health underwriting requires a completed health declaration form from the applicant. The underwriting system evaluates the declared conditions and applies loadings, exclusions, or declines based on underwriting guidelines. Pre-existing conditions are typically excluded for the first 12 months or permanently, depending on severity. The policy admin system records all exclusions on the policy schedule. HIPAA-equivalent data privacy controls must be applied to medical information.
⚠️ Audit Flags
Auditors review the underwriting file for individual health policies to confirm that health declarations were obtained and assessed before the policy was issued. Test that pre-existing condition exclusions are clearly documented on the policy and enforced in the claims process. Review any claims that were denied on pre-existing condition grounds — the claims denial must be supported by the policy exclusion wording. Confirm that data privacy controls are applied to health data in the system.
📄 Required Documentation
Completed health declaration form signed by the applicant, underwriting assessment note documenting any exclusions or loadings applied, signed policy schedule clearly listing exclusions, premium computation, and data privacy consent form.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.