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The American Heritage Dictionary of Business Terms » preferred risk
preferred risk
preferred risk definition - business
preferred risk
A class of insurance for policyholders or potential policyholders who are judged to be less likely than average to suffer an insured loss. For example, a middle-aged woman with an excellent driving record would be considered a preferred risk for automobile insurance. Customers judged to be preferred risks often receive a discount on insurance premiums.
The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.
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