What Is Standard? Definition | Epic Life Glossary

Why it matters

A standard rating means no extra charge for health. Many people with managed conditions fit here. Better classes cost less and substandard classes cost more. If you are offered a class you do not expect, ask what factor drove it and whether another carrier would rate it differently. A standard offer is a normal result, not a bad one.

Source: naic.org

Where we use this term

Related terms

Standard Plus: Standard plus is an underwriting class between preferred and standard. It is meant for applicants in good health who miss a few of the preferred requirements.
Substandard (Table Rating): Substandard, or table rated, means an applicant has higher than average risk. The carrier offers coverage at an increased premium, usually shown as a percentage above the standard rate.
Underwriting Class: An underwriting class is the group a carrier places an applicant in after review, such as preferred or standard. Each class has its own premium rate, with healthier groups paying less.
Risk Class: A risk class is the category of insured people a carrier uses to group applicants with similar expected risk. It decides which premium rate the applicant pays.
Table Rating: A table rating is a premium increase for higher than standard risk, shown with letters or numbers. Each step usually adds about 25 percent to the standard rate, though carriers differ.

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Why it matters

Where we use this term

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