With regard to substandard life insurance risks, which of the following statements is CORRECT?
A) An applicant can be deemed a substandard risk based on physical condition only; no other criteria may be considered.
B) To provide coverage to substandard risks, insurers are allowed to charge an extra premium; however, they cannot alter benefit periods or waiting periods.
C) Because of stringent underwriting requirements, most life insurance applicants are classified as substandard risks.
D) When the applicant represents a substandard risk, the policy may be modified to reduce the benefits provided. "
Ans: D) When the applicant represents a substandard risk, the policy may be modified to reduce the benefits provided. "
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