Life & Health · Chapter 2 · Risk Types & Insurability
Risk Classifications — Standard, Substandard, Preferred
Definition
Standard = average potential for loss, standard premium. Substandard = higher-than-average risk — higher premium, reduced benefit, or declined. Preferred = better-than-average risk — lower premium.
Easy to confuse with
These are what this term gets tested against — if you can't tell them apart cold, drill the contrast.
Related terms