PSI Ohio Insurance Practice Exam

Which of the following classifications of risk is NOT typically recognized?

1. Non-nicotine

2. Environmental

3. Health-related

4. Occupational

The correct answer is: Non-nicotine

The classification of risk known as "non-nicotine" is not typically recognized in the context of insurance risk classifications. Insurance companies commonly categorize risk into groups that are more broadly applicable and relevant to assessing potential hazards associated with insuring an individual or entity. Risk classifications generally include aspects like environmental risks, which consider factors like natural disasters or pollution; health-related risks, which focus on an individual's health status or medical history; and occupational risks, which pertain to dangers associated with a person's occupation or workplace environment. These categories help insurers evaluate potential claims and set appropriate premiums based on the likelihood of loss. In contrast, "non-nicotine" is a narrower term that might refer to lifestyle choices related to smoking but does not encapsulate the comprehensive risk assessment needed in insurance practice. It's not a standard classification used by insurers, making it an outlier compared to the other recognized categories.