Final answer:
An insurance company dealing with substandard risk may charge a higher premium, refuse to issue the policy, or require yearly medical examinations.
Explanation:
If an applicant for a life insurance policy is found to be a substandard risk, the insurance company is most likely to:
- Charge a higher premium: The insurance company may increase the premium to cover the higher risk associated with the applicant.
- Refuse to issue the policy: In some cases, the insurance company may choose not to issue a policy to high-risk applicants.
- Require a yearly medical examination: The company may request regular medical check-ups to monitor the health status of the policyholder.
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