If an applicant for a life insurance policy is found to be substandard, the insurance company is most likely to:

A. Charge a higher premium.
B. Refuse to issue the policy.
C. Require a yearly medical examination.
D. Lower its insurability standards.



Answer :

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:

  1. Charge a higher premium: The insurance company may increase the premium to cover the higher risk associated with the applicant.
  2. Refuse to issue the policy: In some cases, the insurance company may choose not to issue a policy to high-risk applicants.
  3. 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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