What does Standard Risk mean? Read on to discover the definition & meaning of the term Standard Risk - to help you better understand the language used in insurance policies.
A standard risk refers to an insurance risk that an insurance company's underwriting standards considers common or normal. Therefore, it would qualify for standard premium rates without special restrictions or extra ratings. On the other hand, a non-standard risk would receive or lose "points" based on the degree to which it differs from a standard risk, and this would affect the premium pricing.
We hope the you have a better understanding of the meaning of Standard Risk.