An underwriter is evaluating multiple life insurance applications. Based on standard risk classification principles, arrange the following applicant profiles in order from the lowest expected mortality risk (lowest relative premium) to the highest expected mortality risk (uninsurable).
- 1An applicant with an ideal body mass index, excellent blood pressure, and no family history of critical illness.
- 2An applicant with average health metrics, minor seasonal allergies, and a standard life expectancy.
- 3An applicant who engages in amateur auto racing on weekends and has recently been diagnosed with early-stage heart disease.
- 4An applicant currently undergoing intensive, experimental medical treatments for a late-stage terminal illness.
Cevap
The correct order from lowest to highest mortality risk is: the applicant with ideal health (Preferred), the applicant with average health (Standard), the applicant with hazardous hobbies and heart disease (Substandard), and finally the applicant with a terminal illness (Declined).
Risk classification determines premium rates based on expected mortality. The correct order progresses strictly by expected risk: Preferred (lowest risk, discounted premium), Standard (average risk, normal premium), Substandard (higher risk, rated/surcharged premium), and Declined (unacceptable risk, uninsurable).
Adım Adım Çözüm
Anahtar Kavram
Risk Classification Tiers (Preferred, Standard, Substandard, Declined)