Preferred: In insurance underwriting, the group of proposed insured’s who represent a significantly lower than average likelihood of loss within the context of the insurer’s underwriting practices. Contrast with declined risk class, standard risk class and substandard risk class.
Standard: In insurance underwriting, the group of proposed insured’s who represent average risk within the context of the insurer’s underwriting practices and therefore pay average premiums in relation to others of similar insurability. Contrast with declined risk class, preferred risk class and substandard risk class.
Sub-Standard: The premium rates charged insured’s who are classified as substandard risks. Also known as special class rates.