How Do You Spell SUBSTANDARD RISK?

Pronunciation: [sˈʌbstandəd ɹˈɪsk] (IPA)

Substandard risk refers to an increased likelihood of loss or damage when it comes to insuring a person, property or business. The IPA phonetic transcription of this term is /sʌbˈstændəd ˈrɪsk/ with emphasis on the second syllable of both words. The word substandard is formed by adding the prefix "sub-" meaning "below" or "less than" to the word standard. Risk, on the other hand, represents the possibility of incurring loss or damage. Insurers often apply higher rates or stricter conditions for those considered substandard risks.

SUBSTANDARD RISK Meaning and Definition

1. Substandard risk refers to a term primarily used in the insurance industry to describe individuals or entities that are considered to be at an increased level of risk compared to the average person or organization. It acknowledges that these individuals or entities pose a greater likelihood of experiencing losses or incurring expenses.

   In insurance, substandard risk often refers to policyholders who have a higher probability of filing claims due to factors such as pre-existing medical conditions, dangerous occupations, poor driving records, or other circumstances that increase their vulnerability to adverse events. Substandard risks typically face higher premiums or may be subject to coverage limitations or exclusions due to the increased potential for losses or significant expenses.

   When assessing a policyholder's risk profile, insurance companies evaluate various factors and determine if their risk level falls within the standard or preferred category, which typically receives better rates and coverage. If an individual or organization is considered to be substandard, it means they do not meet the criteria to qualify for standard or preferred risk classification. Hence, they may be offered policies with higher premiums or less comprehensive coverage options.

   Being labeled a substandard risk can have financial implications, as the higher premiums associated with this category may place an additional burden on the policyholder. Some insurance companies may offer the option of improving one's risk status over time by demonstrating improved behavior, completing preventative measures, or showing progress towards mitigating certain risks.

2. • A risk assumed in the insurance of a person who has some hereditary or acquired tendency to disease or a slight impairment of some organ; in view of the decreased expectancy of life in such a case an increased premium is charged.

   • See risk.

   A practical medical dictionary. By Stedman, Thomas Lathrop. Published 1920.

Common Misspellings for SUBSTANDARD RISK

• substandard rick
• substandard riqk
• substandard rirk
• substandard risc
• s ubstandard risk
• su bstandard risk
• sub standard risk
• subs tandard risk
• subst andard risk
• substa ndard risk
• substan dard risk
• substand ard risk
• substanda rd risk
• substandar d risk
• substandard r isk
• substandard ri sk
• substandard ris k

Etymology of SUBSTANDARD RISK

The word "substandard" comes from the combination of the prefix "sub-" meaning "below" or "under", and the word "standard" which refers to a level of quality or expectation. So "substandard" implies something that falls below the accepted standard or is of lower quality.

The term "risk" has a slightly different etymology. It derives from the Middle English word "risque", which came from Old Italian "risico" meaning "danger". This came from the Arabic word "rizq" meaning "to seek profit" or "to expect gain".

When these two words are combined into "substandard risk", it refers to a risk that falls below the acceptable level or is considered to be of lower quality compared to the norm. It is commonly used in insurance or financial contexts to describe a risk that is higher than average or poses a greater threat to the insurer.