Certified Financial Consultant (CFC) 2025 – 400 Free Practice Questions to Pass the Exam

A classification of "Preferred" is fitting for an applicant who has not had a medical claim in five years and exercises daily. Insurers evaluate health risks associated with applicants, and a clean medical history generally suggests a lower likelihood of future claims. Regular exercise is also a key indicator of good health, which positively influences an insurance company's assessment.

In the context of health insurance classifications, "Preferred" typically refers to individuals who present a low risk to the insurer due to their health practices and history. They are usually entitled to lower premiums compared to standard classifications because they are deemed less likely to require costly medical care.

On the other hand, "Standard" classifications apply to individuals without significant health issues but who may not meet the stricter criteria of the "Preferred" category. "Substandard" classifications are reserved for those with higher health risks, and "Preferred Plus" typically applies to individuals who exemplify exceptional health and wellness, often having a flawless medical history and ideal lifestyle choices. In this case, the applicant, while healthy and active, fits the "Preferred" category more appropriately.