- 28 Maurice was just advised by his agent that the insurer would like to offer him a rated policy. What does "rated" mean? ad out of Select one: a. The applicant represents more risk than standard but is still insurable. b. Additional exclusions were added to the policy. c. Some red flags were noted in the underwriting process. The policy has been earmarked for a more in-depth analysis if a claim is submitted within the first two years. d. The applicant represents less than the standard risk and would therefore be charged a lower rate. 2 Son 24 1 d out of Which of the following would be considered an arm's length transaction? Select one: a. Grace absolutely assigned a policy to her son when he graduated from university. b. George is terminally ill and decided to sell his policy to an investor. The amount received was approximately 60% of the eventual death benefit c. Chuck gifted a policy to his new daughter and new son-in-law as a wedding gift. d. Brad's wholly owned corporation purchased a life insurance policy on Brad. Brad I snow retiring and closing the business. He wants Insurance coverage, so he purchased the existing policy from the corporation