Answered

Which is generally true regarding insureds who have been classified as preferred risks?

A. They can decide when to pay their monthly premiums.
B. They keep a higher percentage of any interest earned on their policies.
C. Their premiums are lower.
D. They can borrow higher amounts off of their policies.



Answer :

GinnyAnswer

Final answer:

Preferred risks in insurance generally have lower premiums and can borrow higher amounts against their policies.


Explanation:

Preferred risks in insurance are classified as individuals who are considered to have a lower risk of making a claim. This classification often leads to lower premiums for the insured, making their policies more affordable compared to higher-risk individuals. Insureds classified as preferred risks may benefit from borrowing higher amounts off their policies due to their lower risk profile.


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