Asked by: Geralda Jandulskypersonal finance life insurance
What is a substandard insurance company?
Last Updated: 7th May, 2020
Click to see full answer.
Hereof, what does substandard risk mean in insurance?
Insurance industry term for an individual considered below average or an impaired insurance risk due to his or her dangerous habits, health condition, family history of disease, hazardous occupation or hobby, and/or residence in unhealthy surroundings. Also called impaired risk.
Furthermore, what is a insurance risk? An insurance risk is a threat that is covered by an insurance policy and can cause financial losses. When the insured event takes place and a claim is filed, the insurance company has to pay the policyholder the agreed reimbursement amount.
what is substandard life insurance?
Substandard life insurance refers to a type of life insurance issued to individuals considered uninsurable at standard rates due to their below standard physical condition; medical history of serious illness, such as heart disease; or other similar factors.
What is another name for substandard risk classification?
Substandard risk refers to an individual who is considered riskier to insure than the average individual on account of their age, habits, family history of disease, health condition, occupation, hobbies, morals, and residential location or surroundings. It is also known as impaired risk.