Who among the following is most likely to pay a lower premium amount?

The reasoning behind the selection of a preferred risk client as the one most likely to pay a lower premium amount lies in the characteristics associated with preferred risks. Insurers classify preferred risk clients as individuals who present a lower likelihood of filing claims based on various factors, such as excellent health, a clean driving record, a stable financial background, or a history of responsible behavior with previous insurance policies.

Because these clients are seen as less risky, insurance companies reward them with lower premiums as part of their underwriting process. This reflects the insurance industry's fundamental principle of risk assessment – the lower the perceived risk, the lower the cost of coverage.

In contrast, policyholders with previous claims are generally considered higher risks due to their history of filing claims, leading to potentially higher premiums. High-risk clients, by nature, are more prone to making claims or returning losses, which further increases their premium costs. Although a client with no prior insurance might have a clean slate in terms of claims, their lack of insurance history could also lead to uncertainty about their risk profile, typically resulting in premiums that are not as favorable as those given to established preferred risk clients. Therefore, a preferred risk client stands out in this scenario as the individual most likely to benefit from lower premium amounts.