Question

a substandard risk would pay
a lower premium
a higher premium
the same premium
no premium

if the agent feels that there is a misrepresentation on the part of the applicant for insurance what must the agent do
inform the insurance company
change the applicants answer to what the agent knows is true
erase the answer once the applicant submit the application
refuse the application

Explanation:

1. For substandard risk: Substandard risks have higher likelihood of filing claims, so insurers charge more to offset risk.
2. For misrepresentation: The agent's core duty is to report inaccurate applicant information to the insurer to uphold underwriting integrity.

Answer:

1. A higher premium
2. Inform the insurance company