Which underwriting class includes higher risk with higher premiums or riders?

Which underwriting class includes higher risk with higher premiums or riders?

• A. Substandard
• B. Standard
• C. Elite
• D. Preferred

Answer: (A)

Underwriting classes reflect how risky a person is to insure. When health or lifestyle raises mortality risk, insurers price the policy higher and may add riders to cover that extra risk. The substandard class is used for applicants who pose higher risk, so they typically face higher base premiums and may have table ratings or other riders. In contrast, elite, approved as a higher tier, and standard or preferred categories are associated with lower or average risk and thus lower premiums. Since the question is asking for the class that carries higher risk and therefore higher premiums or riders to offset that risk, the substandard category is the best fit.

Underwriting classes reflect how risky a person is to insure. When health or lifestyle raises mortality risk, insurers price the policy higher and may add riders to cover that extra risk. The substandard class is used for applicants who pose higher risk, so they typically face higher base premiums and may have table ratings or other riders. In contrast, elite, approved as a higher tier, and standard or preferred categories are associated with lower or average risk and thus lower premiums. Since the question is asking for the class that carries higher risk and therefore higher premiums or riders to offset that risk, the substandard category is the best fit.