A risk is considered substandard based on any or all of the following criteria?

A risk is considered substandard primarily due to factors that can potentially increase the likelihood of a claim being made against a policy. In this context, the correct choice highlights three critical areas: occupation, moral character, and family health history.

Occupation plays a significant role because certain jobs are inherently riskier than others—such as those involving hazardous materials or high physical demands—leading insurers to categorize individuals in these professions as a higher risk. Moral character refers to an individual's history of behavior and personal integrity, which can relate to the likelihood of engaging in activities that might increase the risk of claims, including risky behaviors or dishonesty. Lastly, family health history is critical because a family background with significant health issues can indicate a potential for inherited conditions, thereby influencing the assessment of risk.

The other criteria mentioned in the incorrect choices do not align as closely with risk assessment in the insurance context. Income and educational attainment may influence various socio-economic aspects but are not directly related to immediate risk factors that would lead to substandard classifications from an insurance standpoint. Similarly, while death and educational background can be important in broader risk assessments, they do not specifically address the factors that lead to substandard risk classification as effectively as those listed in the correct answer.