A risk is considered substandard based on which criteria?

A risk is considered substandard based on several important factors that assess the likelihood of loss or unfavorable events occurring. The correct choice identifies occupation, moral character, and family health history as the criteria that impact risk classification.

Occupation plays a significant role because certain jobs can inherently carry higher risks related to health or safety. For example, individuals working in hazardous environments may face additional health risks that could make their overall risk profile substandard.

Moral character is also crucial in this assessment. Insurers often evaluate an individual's integrity and trustworthiness, as those with a questionable moral track record might engage in behavior that increases the likelihood of claims being made.

Family health history adds another layer to the determination of risk status. If there is a history of significant health issues in a person's family, this can suggest a higher likelihood of similar health issues occurring in the individual, raising their risk classification as substandard.

Together, these factors provide a comprehensive view of an individual's risk profile, aligning well with what is recognized as essential information to consider when classifying risk.