Insurance Term
Substandard Risk
An applicant who does not meet standard underwriting requirements due to health, occupation, or high-risk habits.
Detailed Explanation
Another name for a substandard risk classification is a rated risk or rated policy. Insurers will typically charge higher premiums (known as rated premiums) to offset the higher likelihood of a claim.
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Practice QuestionEasy
Which of the following best describes the concept of Substandard Risk?
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