Answered

Which is generally true regarding insureds who have been classified as preferred risks?

A. They keep a higher percentage of any interest earned on their policies.
B. Their premiums are lower.
C. They can borrow higher amounts off of their policies.
D. They can decide when to pay their monthly premiums.



Answer :

GinnyAnswer

Final answer:

Preferred risks have lower premiums and can keep a higher percentage of interest earned on their policies.


Explanation:

Preferred risks are generally classified as such because they present a lower likelihood of filing claims, resulting in lower premiums compared to higher-risk individuals. As preferred risks are less likely to need to access their policy funds, they may have the advantage of keeping a higher percentage of any interest earned on their policies.


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