What type of risk is characterized by an average risk with no special health problems?

The correct answer is standard risk. This type of risk refers to individuals who exhibit an average level of health without any significant health issues that could increase their likelihood of filing a claim. Insurers categorize these individuals in the middle tier of the risk classification system, meaning they present a typical health profile that aligns well with the general population.

Individuals classified as preferred risk typically demonstrate better-than-average health or lifestyle factors, leading to lower premiums. In contrast, substandard risk applies to individuals with health issues or hazardous lifestyle choices that increase their likelihood of claims, often resulting in higher premiums. Surcharged risk refers to cases where a premium increase is applied due to specific concerns, such as those found in substandard situations. Thus, standard risk effectively represents individuals who do not fit into these higher or lower categories, making it the correct choice in this context.