Substandard risks are individuals who?

Substandard risks refer to individuals whose health or lifestyle factors place them at a higher risk of making a claim compared to the general population. This can include those who may have chronic illnesses, serious medical conditions, or engage in hazardous occupations that increase the likelihood of accidents or health issues.

In this context, the correct choice highlights that such individuals may not qualify for standard insurance rates because their implied risk is greater. Insurers often classify them as substandard to account for this elevated risk when underwriting policies. This classification can lead to higher premiums or specific conditions placed on the policy due to the increased likelihood of claims.

The other options do not accurately represent the characteristics of substandard risks. For instance, individuals in excellent health would typically qualify for standard rates, as would those who can easily obtain standard rates. Furthermore, individuals with no existing health conditions would generally also qualify for standard insurance rates, as they would be considered lower risk.