New York State Life Insurance Exam Questions Practice Question
Which of the following circumstances may cause policy premiums to be higher than standard premiums?
Correct Answer: C
Rationale: Higher policy premiums often result from the insured not meeting specific health requirements. Insurers assess risk based on health status, and failing to meet these criteria indicates a higher likelihood of claims, leading to increased premiums.
Option A, agent misquoting the price, may lead to confusion but does not inherently affect the risk assessment used for premium calculation.
Option B, while an unhealthy appearance can raise concerns, it is not a formal criterion for determining premiums.
Option D, incomplete applications, can delay processing but typically does not directly influence premium rates unless it results in undisclosed health issues.
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