A nonsmoker, of average weight, and in excellent health would most likely be in which risk category?

• A. Standard
• B. Preferred
• C. Substandard
• D. High risk

Answer: (B)

Underwriting groups applicants by mortality risk, and a nonsmoker with average weight and excellent health presents the lowest assessed risk to the insurer. That combination typically fits the Preferred category, which earns the best premium rates and favorable terms because the insurer believes the likelihood of a claim is lowest.

Standard would apply to someone with average risk overall but without the extra positives like non smoking; Substandard is used when there are health issues or factors that raise risk, leading to higher premiums or limited coverage; High risk is for significantly elevated risk factors. Since this profile excludes smoking, is of normal weight, and shows excellent health, it aligns with the bottom-rated risk in underwriting, i.e., Preferred.