Question

question 10 of 15
which of the following statements is correct about a standard risk classification in the
same age group and with similar lifestyles?
a. standard risk is also known as high exposure risk.

b. standard risk pays a higher premium than a substandard risk.

c. standard risk is representative of the majority of people.

d. standard risk requires extra rating.

Explanation:

Standard risk classification refers to individuals with average risk levels, matching the typical risk profile of most people in their age and lifestyle group. Option A is wrong because standard risk is not high exposure risk. Option B is incorrect as substandard risk (higher risk) pays higher premiums than standard risk. Option D is wrong because extra rating is for substandard, not standard, risks.

Answer:

C. Standard risk is representative of the majority of people.