An insurance policy may be issued with a preferred insurance premium in all of the following situations EXCEPT:

Preferred insurance premiums are generally offered to individuals who present lower risk factors to insurers. This typically includes various health and lifestyle factors that contribute to the likelihood of claims.

Having a good driving record, being a non-smoker, and maintaining a healthy weight are all indicators of a lower risk, as they suggest responsible behavior and good overall health. Such characteristics are directly associated with reduced mortality and morbidity rates, making these individuals more favorable from an underwriting perspective, and justifying the issuance of a policy with a preferred premium.

In contrast, living in a rural area does not inherently imply a lower risk for life insurance purposes. While some might argue that rural living corresponds with a more active lifestyle or lower exposure to certain hazards, this is not a reliable metric for underwriting as risk can vary widely within rural and urban settings. Factors like access to healthcare or higher rates of certain accidents could also influence the risk profile of residents in rural areas differently. Therefore, this option does not align with the typical considerations for awarding preferred insurance premiums.