Life Insurance FundamentalsQuestion 151 of 315
An applicant is found to be in such poor health and high-risk occupation that the insurer will not issue a policy at any price. The applicant's status is:
a.Preferred
b.Standard
c.Substandard with high table rating
d.Declined / uninsurable
Explanation
Substandard means the applicant is acceptable but at a higher cost. When the underwriter concludes that no acceptable premium would cover the risk, the applicant is declined and treated as uninsurable, at least at this time.
Law Reference: Standard insurance principlesPractice all 315 questions free — no signup required.
Related questions on this topic
- When the insurer assumes a higher rate of interest will be earned on policy reserves, the effect on the gross premium is generally:
- Which feature of an Annual Renewable Term (ART) policy makes it different from a level term policy?
- Which of the following BEST illustrates 'return-of-premium term' insurance?
- A Modified Endowment Contract (MEC) is BEST described as:
- A 'survivorship' (second-to-die) life insurance policy is BEST characterized by which of the following?
- 'Decreasing term' life insurance is BEST described as:
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against California Life & Health Insurance License Exam · How we review