YOU ASK:

What is the definition of Standard Risk Class?

WE ANSWER:

A Standard Risk Class refers to the group of insurance applicants that carry an average risks in relation to the underwriting practices of the insurance company.

Those belonging to the standard risk class will be charged the standard or average premium rates. This is in contrast with the rates charged to people belonging to the substandard or rated risk class, who will be charged higher premium rates because of the higher risk they carry.

People in the standard risk class usually have jobs that are considered safe, are in great physical condition and do not present a large moral hazard to the insurance company, as per the company's underwriting guidelines.

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