If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a

A)
Preferred risks
B)
Declined risk
C)
Standard life
D)
Sub-standard life

Correct Answer :   Preferred risks

If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a Preferred risks. A preferred risk is a policyholder who is considered significantly less likely to file claims.

Published On : June 1, 2021