Which classification refers to individuals or properties that present a greater risk to insurers?

The classification that refers to individuals or properties presenting a greater risk to insurers is known as substandard. In the context of insurance, substandard risks are those that deviate from the norm in a way that makes them more likely to experience a claim or loss. This might be due to a variety of factors, such as health issues in the case of individuals or certain hazardous conditions concerning properties.

Substandard classifications lead insurers to charge higher premiums or impose more restrictions on the coverage offered because the likelihood of a loss event occurring is statistically greater than it is for standard risks. Therefore, understanding the substandard classification is crucial for insurers in assessing risk and setting appropriate pricing strategies.

In contrast, standard classifications generally represent average risk, while preferred classifications are applied to individuals or properties that demonstrate lower risk profiles. The term "non-risk" does not accurately relate to this context as it is not a common classification in insurance but rather implies a level of risk that is negligible or not insurable.