Match each life insurance applicant profile below to the most appropriate underwriting risk classification.
- An applicant in exceptionally good health with a safe occupation, no tobacco use, and no family history of premature mortality.Preferred Risk
- An applicant with average health, a normal life expectancy, and no unusual occupational hazards.Standard Risk
- An applicant with a manageable chronic health condition that increases their mortality risk above the average level.Substandard Risk
- An applicant with a severe, unmanaged terminal illness presenting a risk that the insurer cannot accept.Declined Risk
Cevap
Exceptionally good health matches Preferred Risk. Average health matches Standard Risk. Manageable chronic condition matches Substandard Risk. Severe terminal illness matches Declined Risk.
Risk classification allows underwriters to group applicants by their expected mortality risk to charge appropriate premiums. Preferred risks are below-average risk, Standard risks are average, Substandard risks are above-average but still insurable, and Declined risks are completely uninsurable.
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Risk Classification