What action can an underwriter choose that is NOT typically allowed for a prospective customer who does not qualify for a standard issue policy?

The action that is typically not allowed for a prospective customer who does not qualify for a standard issue policy is to issue the policy with a probationary period allowing for cancellation at a later date. This is important because a probationary period is often utilized in situations where a policy is approved with specific conditions attached, usually as a way to manage and mitigate risk based on the customer's health or other underwriting factors.

When underwriting considers a risk, they generally follow strict guidelines that aim to protect both the insurer and the insured. The options of charging a higher premium, outright declining the risk, or attaching a rider to exclude specific conditions are common practices employed to address individual risk factors associated with applicants who do not meet the thresholds for standard coverage.

Issuing a policy with a probationary period can imply uncertainty about the risk and might lead to complications in policy enforcement, as it suggests that the insurer is reserving the right to cancel coverage based on future assessments. This could create dissatisfaction and confusion for the insured, who may assume they have secure coverage. Therefore, it is typically not a standard action taken by underwriters in these scenarios.