Which underwriting class is associated with individuals charged a higher rate due to increased risk factors?

The substandard class is designated for individuals who present higher risk factors that could lead to increased likelihood of claims. This classification typically includes individuals with health issues, hazardous occupations, or specific lifestyle choices that elevate their risk profile. Because these factors significantly affect the insurer's exposure to loss, individuals placed in the substandard class are typically charged higher premiums to compensate for the increased risk they represent.

In contrast, the preferred class usually includes individuals who are considered low risk and therefore can access lower rates. The standard class encompasses individuals who fit within average risk categories and receive average pricing. The uninsurable class refers to those individuals whose risk factors are so extreme that insurance coverage is not feasible at all. In essence, each category reflects the risk associated with insuring an individual, with the substandard class specifically addressing those who require higher premiums due to their enhanced risk.