18.1.3 Moral Hazards
An individual's personal lifestyle can be an important determining factor. For instance, if a person smokes and drinks to excess, they obviously present a higher risk of incurring more medical bills. Habits such as alcohol or drug use, financial trouble, or a poor driving record could play a role in determining a higher premium rate. An individual's reputation and character are taken into consideration as well as financial status.
A higher premium rate would also apply to any individual who participates in a hobby that could cause a higher risk of untimely death (such as skydiving, rock climbing, and auto racing).
