What is the definition of Declined Risk Class?

The Declined Risk Class refers to a group of people who are declined insurance coverage.

This group who applied for insurance has risks (anticipated extra mortality or impairments) that are such so that the insurance company is not able to cover their risks at affordable premiums. This kind of risk is called an uninsurable risk, since it present a high risk of the insurance company paying a large amount of claims. This means that the risk is inevitable.

There is usually only a small percentage of insurance applicants who fall under the declined risk class. Insurance companies, as a rule, try to offer some amount of affordable insurance to as many people.

• Difference in Conditions
• Assigned Risk Plans
• Assets
• Asset-Backed Securities
• Assignment