Which of the following describes a preferred risk in insurance?

A preferred risk in insurance refers to individuals who present a lower risk to the insurer based on specific health and lifestyle factors. These individuals are typically healthier and less likely to file a claim, which makes them more favorable to the insurance company.

Clients who do not smoke and have no special health problems are quintessential examples of preferred risk. Non-smokers generally exhibit lower health risks compared to smokers, and the absence of special health problems indicates a stable health status. This risk classification allows insurers to offer better premium rates and conditions because these individuals are less likely to experience significant health issues that could lead to claims.

In contrast, other choices describe clients with characteristics that would not fall under the preferred risk category. For instance, clients with negative family histories may reflect an increased predisposition to certain health issues, while those engaging in dangerous hobbies or having average occupational hazards present higher risks, making them less desirable to insurers.