Which of the following factors can contribute to a person being categorized as a substandard risk?

Being categorized as a substandard risk typically occurs when an individual presents higher risks for insurance companies, particularly in the context of health insurance. A personal history of disease is a significant factor in assessing an individual’s risk profile. This factor indicates a previous or ongoing health condition that could lead to greater medical expenses or health complications in the future.

For instance, if a person has a chronic illness or a serious medical history, insurers view this as a higher likelihood that they will require medical care, which translates to increased financial risk for the insurance company. Consequently, insurers may either elevate the premium rates, impose coverage limitations, or classify that individual as a substandard risk.

Understanding the remaining factors helps in grasping the overall risk assessment process. A strong family health history may suggest predispositions to certain conditions, but it does not affect the individual's current health status as directly as personal history does. Similarly, regular physical activity and occupation in a low-risk environment positively contribute to a person's health status and reduce the risk factors associated with poor health. Therefore, these options do not align with the characteristic of being categorized as a substandard risk.