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The Insurance practice presents a variety of risk classifications which determine premiums, coverage availability and access to insurance. Some of these classifications are clearly desirable in that they provide insured persons with loss prevention incentives. Others may be necessary for the functioning of a private insurance market.
Traditional Risk Classifications
Applicants are required to meet specific criteria to qualify for the Super Preferred, Preferred and Standard underwriting classes. However, applicants may meet those criteria and still not qualify for a specific class if they have multiple impairments or avocations requiring a table rating, flat extra premium or possible waiver.
- Super Preferred Class - is typically designated for proposed insureds whose anticipated mortality is among the lowest of those in the preferred class. Offers the lowest premium for the lowest risk of mortality.
- Preferred Class – is designated for insureds whose anticipated mortality is significantly lower than average degree of risk (i.e. Standard).
- Standard Class - designated for insureds whose anticipated mortality is average.
- Substandard Class - also called special or impaired risk, usually designates persons whose anticipated mortality is higher than average. This is where “table ratings 1-10 or A-J” usually apply depending upon the impairment(s) progress, the clients regular follow-ups with attending physicians, as well as necessary lifestyle changes to improve or maintain their overall health and control the impairment(s).
All risk classes are given debits and credits based upon nicotine use, substance abuse, blood pressure, cancer history, heart health history, cholesterol (HDL-LDL-Ratio and Triglycerides) driving and family history and hazardous occupations and avocations.
