| When speaking in insurance terms, you will notice the | | | | final arbiters of who is acceptable and who is not |
| term "acceptable risk". What is this term and what | | | | acceptable to insure on that criteria alone. Each |
| does it mean? An acceptable risk is an insurance risk | | | | agency is different from the first when it comes to |
| that the insurance company is willing to insure. There | | | | acceptable risks. |
| are many different criteria that will form an | | | | Now let's illustrate acceptable risk and unacceptable |
| acceptable risk category. Some of the factors do | | | | risk. An acceptable risk for example would be a 42 |
| include age, driving record, automobile type and what | | | | year old female, clean driving record, has taken |
| the auto is used for. This will categorize part of what | | | | driver's education. Has a Ford Taurus - 1982 model |
| is considered acceptable risk. There are many set | | | | two door. This is an acceptable risk. Now let's |
| factors such as the above factors that will be | | | | compare that with the same age female, who has a |
| considered when trying to insure an automobile and | | | | lousy driving record, and has a sports car like a |
| driver for road worthiness. | | | | Toyota Celica for example. The insurance company |
| Usually acceptable risk will include a clean driving | | | | will either deny the second female coverage or |
| record, or little to no tickets, the age of the driver | | | | charge her a higher rate than the first female due to |
| and the type of car or truck to be insured. The way | | | | the unacceptable risk that the second female has |
| that the automobile will be used tells a great deal | | | | with the driving record and the sports car. That is |
| about the acceptability of risk for insurance purposes. | | | | the difference between accepted and unaccepted |
| These risk categories are set by the insurance | | | | risk. |
| agencies themselves. They and they alone are the | | | | |