The correct answer is: A. In a non-medical case, risk cannot be assessed in the absence of medical report.
A non-medical case is a life insurance application where the applicant does not provide a medical report. In this case, the insurer will assess the risk based on the information provided in the application form, such as the applicant’s age, occupation, and lifestyle. The insurer may also ask the applicant to provide additional information, such as a blood pressure test or a cholesterol test.
It is possible to assess risk in a non-medical case, but it is more difficult than in a medical case. This is because the insurer does not have as much information about the applicant’s health. As a result, the insurer may charge a higher premium for a non-medical case.
More than 90% of people who submit proposals on their lives are accepted at ordinary rates. This is because most people are healthy and do not have any pre-existing conditions. However, if the applicant has a pre-existing condition, the insurer may charge a higher premium or may not accept the application.
In preferred lives, the level of anticipated mortality is likely to be lower than even standard lives. This is because preferred lives are generally healthier than standard lives. As a result, the insurer is less likely to have to pay out on a claim for a preferred life.
Therefore, the statement “In a non-medical case, risk cannot be assessed in the absence of medical report” is incorrect.