Impaired Risk Substandard Risk

Definition of "Impaired risk (substandard risk)"

Cindy & Doug Bunch
Cindy & Doug Bunch Keller Williams Realty- The Bunch Team

In life and health insurance, person whose physical condition is less than standard or who has a hazardous occupation or hobby. For example, an applicant with a history of strokes is regarded as an impaired risk. Some substandard insurance companies specialize in insuring substandard risks, applying an additional premium (surcharge) to reflect the higher probability of loss from a particular impairment.

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