What is meant by "guaranteed issue" in the context of insurance?

Guaranteed issue refers to a policy requirement wherein an insurer is mandated to provide coverage to applicants regardless of their health status or any pre-existing conditions. This means that individuals cannot be denied insurance coverage, nor can they be subjected to medical underwriting or screening processes that might otherwise lead to denial of coverage. The principle behind guaranteed issue is to promote accessibility to insurance for those who may have difficulty obtaining it due to health issues, ensuring that everyone has the opportunity to secure insurance protection.

This approach is particularly common in specific types of insurance plans, such as certain health insurance products or during open enrollment periods, where insurers must accept all applicants at the specified rates. It plays a significant role in the broader context of ensuring that vulnerable populations have access to essential health services without discrimination based on their health history.