An individual who is NOT acceptable by an insurer at standard rates because of health, habits, or occupation is called a

A rating risk is not a standard term used in insurance to describe an individual’s acceptability. Instead, it generally refers to the process of determining the rate to be charged for insurance coverage based on assessed risks. This term does not specifically denote a category of individuals who are uninsurable at standard rates.

A standard risk refers to individuals who meet the criteria set by insurers for coverage at standard rates. They are assessed as having average health, habits, and occupations, thus qualifying for typical premiums without additional charges. This option is the opposite of what the question describes.

Preferred risks are individuals who present lower risk to insurers due to excellent health, favorable habits, or safe occupations. These individuals qualify for lower premiums because they are deemed less likely to file claims. This classification is also contrary to the individual described in the question.