YOU ASK:
What is the definition of Substandard Premium Rates?
WE ANSWER:
Substandard Premium Rates refer to higher rates charged to insurance applicants who fall under the substandard risk group. Those who belong to the substandard risk exhibit a greater-than-average likelihood of loss. The classification is based on several factors, such as height/weight ratio, lifestyle, health history, gender and occupation. Thus, the factors may either be medical or non-medical.
Those under the substandard risk class are charged a higher premium, since they show a greater risk of loss. There are levels of substandard premium rates, depending on the extent upon which the individual shows a risk of loss.
This is also called special class rates.
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More insurance terms around substandard premium rates:
- Substandard Risk Class
- Suicide Exclusion Provision
- Superfund
- Supplemental Coverage
- Surety Bond
- Surplus
- Surplus Lines
- Surrender Charge
- Surrender Cost Comparison Index
- Swaps
- Subrogation
- Structured Settlement
- Straight Life Annuity
- Stock Insurance Company
- Statutory Accounting Principles (SAP)
- Standard Risk Class
- Stacking
- Spread of Risk
- Split-Dollar Life Insurance Plan
- Spendthrift Trust Clause