What term describes applicants who are rejected for insurance coverage?

The term that describes applicants who are rejected for insurance coverage is "Declined Risks." When an insurance company evaluates an applicant's health, lifestyle, and other risk factors, they may decide that the applicant does not meet their underwriting standards. This decision leads to a rejection of the application, categorizing these individuals as declined risks.

In contrast, substandard risks refer to applicants who are accepted but at higher premiums due to poorer health or other risk factors. Preferred risks are those who are considered lower risk and qualify for better rates due to favorable characteristics, while exempt risks do not relate to insurance applications and typically refer to individuals or situations excluded from certain coverage. Understanding these classifications helps clarify the underwriting process and the factors that influence an insurance company's decision-making.