What classification is commonly assigned to a current tobacco user in underwriting?

What classification is commonly assigned to a current tobacco user in underwriting?

• A. Standard smoker or smoker load
• B. Non-smoker
• C. Preferred non-smoker
• D. Denied

Answer: (A)

In underwriting, tobacco use is treated as a higher-risk factor that raises the premium. A person who currently uses tobacco is placed in a smoker category, typically described as a standard smoker or given a smoker load. The “load” is an extra premium surcharge added to reflect the added risk from tobacco use. Non-smoker and preferred non-smoker are reserved for applicants with no tobacco use or especially low risk, so they don’t apply to current tobacco users. Denied is not a standard rating category; it’s an underwriting decision to decline coverage, which is separate from the usual smoker pricing.

In underwriting, tobacco use is treated as a higher-risk factor that raises the premium. A person who currently uses tobacco is placed in a smoker category, typically described as a standard smoker or given a smoker load. The “load” is an extra premium surcharge added to reflect the added risk from tobacco use. Non-smoker and preferred non-smoker are reserved for applicants with no tobacco use or especially low risk, so they don’t apply to current tobacco users. Denied is not a standard rating category; it’s an underwriting decision to decline coverage, which is separate from the usual smoker pricing.