Which One of the Following Statements, is Correct, with Regard to 'Declined Lives', under Risk- Classification?
A)'Declined Lives' consist of those Individuals, whose Anticipated Mortality corresponds to the Stand ard Lives, represented by the Mortality-Table.
B)'Declined Lives' consist of those Individuals, whose Impairments and Anticipated Extra Mortality are So Great, that they could not be provided Insurance- Coverage, at an Affordable Cost.
C)'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Higher Than the Average Lives or Stand ard Lives, but are still considered to be Insurable.
D)'Declined Lives' consist of those Individuals, whose Anticipated Mortality is Significantly Lower Than Stand ard Lives, and hence, could be charged a Lower Premium.

Question

Quizplus · Accepted Answer

'Declined lives' refer to individuals whose health impairments or anticipated extra mortality are so significant that they cannot be offered insurance coverage at a standard or affordable rate. This is because their risk of claiming is much higher than average, making it financially unviable for insurance companies to cover them under standard terms.

Which One of the Following Statements, Is Correct, with Regard