If, Mr. Brijesh, a 40-Years' Old Individual, is perceived as a 'Sub-Stand ard Risk', by the Insurance Company, then, Which One of the Following Statements, will Hold True, with Regard to Risk-Acceptance by the Insurance Company?
A)Risk will be Accepted at Ordinary Rates.
B)Risk will be Accepted at Lower Rates.
C)Risk will be Accepted With an Extra, Over the Tabular Rate of Premium.
D)Risk will be Declined.

Question

Quizplus · Accepted Answer

When an individual is perceived as a 'Sub-Standard Risk' by an insurance company, it means that the person poses a higher risk compared to the average policyholder. Therefore, the insurance company may still accept the risk but will charge a higher premium to compensate for the increased risk. This is done by adding an extra amount over the standard or tabular rate of premium.

If, Mr Brijesh, a 40-Years' Old Individual, Is Perceived as a a 'Sub-Stand