Answer:
The correct answer is D) Remove all of the exclusion riders.
Insurance companies take various actions to reduce their exposure to claims from substandard disability risks. These actions can include:
A) Charging additional premium: Insurance companies may charge higher premiums to cover the increased risk associated with substandard disability risks.
B) Increasing the period of elimination: The elimination period is the time between when a disability occurs and when the policy starts paying benefits. By increasing this period, insurers can reduce their exposure to claims.
C) Reducing the amount of benefit: Insurers may limit the benefit amount for substandard disability risks to mitigate their potential losses.
However, removing all of the exclusion riders would not be a typical action taken to reduce exposure to substandard disability risks. Exclusion riders are often included in insurance policies to exclude coverage for specific pre-existing conditions or risks. Removing all exclusion riders would increase the insurer's exposure to various risks, including those associated with substandard disability risks. Therefore, option D is the exception in this context.
Step-by-step explanation: