Life Insurance FundamentalsQuestion 132 of 315
An applicant has well-controlled high blood pressure and is otherwise healthy. The underwriter accepts the application but adds a flat extra premium for the cardiovascular risk. The applicant has been placed in which risk class?
a.Substandard
b.Preferred Plus
c.Standard
d.Preferred
Explanation
A substandard or rated applicant presents higher-than-average mortality risk and is accepted with extra premium (either a flat extra per thousand or a table rating expressed as a percentage of standard). Preferred classes are for healthier-than-average lives.
Law Reference: Cal. Ins. Code §10140Practice all 315 questions free — no signup required.
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Sen Lin, PrepPass Founder · Verified against California Life & Health Insurance License Exam · How we review
Reviewed by John Zihao Zhang — California-Licensed Life Insurance Agent (CA Dept. of Insurance License #4396095 — verify)