Q906
If a life has an anticipated mortality significantly lower than standard lives and could be charged lower premium the life is a –
A.
Standard life
B.
Sub-standard life
C.
Declined risk
D.
Preferred risks
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
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.