What Does Substandard Risk Mean?
Substandard risk refers to an individual who is considered riskier to insure than the average individual on account of their age, habits, family history of disease, health condition, occupation, hobbies, morals, and residential location or surroundings. For example, an individual who has survived cancer may be considered a substandard risk for health or life insurance policies.
It is also known as impaired risk.