Chartered Life Underwriter Exam 2025 – 400 Free Practice Questions to Pass the Exam

A nonsmoker who is of average weight and in excellent health is likely to fall into the preferred risk classification. This classification is designated for individuals who display characteristics that indicate a lower likelihood of insurance claims when compared to the general population.

Insurance underwriters assess applicants based on various factors such as health status, lifestyle choices, and medical history. A nonsmoker is already considered at a reduced risk for many health issues related to smoking, while being in excellent health and maintaining an average weight further enhances the perception of lower risk. Preferred status may also offer advantageous premium rates due to this lower exposure to risk.

In contrast, individuals classified as standard would typically have some risks that align more closely with the average population, while those marked as substandard or high risk would carry issues such as serious health problems or hazardous lifestyles, which are not applicable in this scenario. Therefore, given the profile of an individual who is a nonsmoker, in excellent health, and maintaining an average weight, they would most appropriately be categorized as preferred.