All of the following statements about the classification of applicants are correct EXCEPT?

All of the following statements about the classification of applicants are correct EXCEPT?


A) applicants who are preferred risks have premium rates that are generally lower than standard rate risks.

B) an individual can be rated as a substandard risk because of a dangerous occupation.

C) a substandard applicant can never be rejected outright by the insurer.

D) a standard applicant fits the insurer's guidelines for policy issue without special restrictions.


Answer: C) a substandard applicant can never be rejected outright by the insurer.

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