Which of the following is most likely to be an outcome for someone categorized as a substandard risk?

A substandard risk typically refers to an individual who presents a higher likelihood of filing claims due to health issues, lifestyle factors, or other pertinent risk factors. Insurance companies assess these risks to determine the appropriate coverage and premiums. When someone is categorized as a substandard risk, it often means they are perceived as more likely to incur costs that exceed what would be standard for the general population.

In many cases, the outcome for a substandard risk may involve denial of coverage or being offered coverage at a much higher premium. In this context, denial of coverage is a realistic outcome especially if the risk is significant enough that the insurer determines that it is not financially viable to offer a policy to the individual.

The other options do not align with the common practices in the insurance industry when dealing with substandard risks. Preferred access to benefits, higher coverage limits, and standardized premium rates usually apply to individuals classified as standard or preferred risks, who pose lower risks to the insurer. Therefore, the most likely outcome for someone categorized as a substandard risk is indeed denial of coverage.