Important Points for IC 22 - Life Insurance Underwriting Exam
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Morbidity risk arises when the probability of an individual likely to become ill or contracting an adverse medical condition is high.
If the risk associated with an individual is considered to be low and insurable at standard premium rates by insurance companies, then it is known as standard risk.
If the risk associated with an individual is considered to be high and cannot be insured at standard premium rates by insurance companies, then it is known as sub-standard risk. The range of sub-standard, too, may also vary from being slightly sub-standard to substantially sub-standard.
If the risk associated with an individual is considered to be low at the time of commencement of policy, but there is a chance of that risk becoming high after a certain period, it is known as increasing extra risk.
If the risk associated with an individual is considered to be high at the time of commencement of policy, but there is a chance of that risk becoming low after a certain period with proper supervision and medication, it is known as decreasing extra risk.
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