Life Insurance FundamentalsQuestion 151 of 716
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.Substandard with high table rating
b.Standard
c.Preferred
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.
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PrepPass team · 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)