What is meant by 'Risk-Classification'? Choose the Most Appropriate Option.
A)The Process, in which, Individual Lives are Categorised and Assigned to Different Risk-Classes, Depending on the Degree of Risks, they Pose.
B)The Tendency of People, Who suspect or know that, their Chance of Experiencing a Loss is High, to seek-out the Insurance, Eagerly; and to gain in the Process.
C)The Process of Evaluating Each Proposal for Life- Assurance in Terms of the Degree of Risk, it represents; and then Deciding: Whether or Not to Grant the Insurance, and on What Terms.
D)The Process, in which, the Applicants, Who are Exposed to Similar Degrees of Risk, are Placed in the Same Premium-Class.

Question

Quizplus · Accepted Answer

Risk classification involves categorizing individuals into different risk classes based on the level of risk they present, which is essential for determining insurance premiums and coverage terms.

What Is Meant by 'Risk-Classification'? Choose the Most Appropriate Option