Question

An insurance policy may be issued with a preferred insurance premium in all of these situations EXCEPT?

1) When the insured is in good health
2) When the insured has a high credit score
3) When the insured has a history of accidents
4) When the insured is a non-smoker

Answer 1

An insurance policy may be issued with a preferred premium in all situations except when the insured has a history of accidents.

Step-by-step explanation:

An insurance policy may be issued with a preferred insurance premium in all of these situations except when the insured has a history of accidents. Insurance companies assess the risk associated with insuring an individual based on various factors such as health, credit score, and lifestyle choices. The healthier an insured individual is, the lower the risk for the insurance company, which can result in a preferred insurance premium.

Similarly, individuals with high credit scores are considered less risky and may also qualify for a preferred premium. Non-smokers are generally healthier and therefore may be offered lower premiums. However, a history of accidents indicates a higher risk of future accidents, which would make it less likely for the insurance company to offer a preferred premium.