Is it permissible for an insurance company to legally deny coverage to someone based on their age and the belief that they may not comprehend policy exclusions? For instance, can an 80-year-old man be refused a quote simply because of his age and the assumption that he won’t grasp that his policy excludes flood coverage? Are insurers allowed to make such presumptions?
Can an insurance company legal refuse insurance to someone based on their age and the fact they think they won’t be able to understand an exclusion?
In many jurisdictions, insurance companies have the right to determine their underwriting criteria, which can include factors such as age. However, refusing to provide a quote based solely on age or assumptions about a person’s ability to understand policy exclusions may raise legal and ethical concerns, particularly regarding age discrimination.
Insurance companies must comply with relevant laws and regulations, including those that prohibit discrimination based on age. For instance, the Age Discrimination in Employment Act (ADEA) and the Equal Credit Opportunity Act (ECOA) in the United States protect against age-related discrimination in certain contexts.
While insurers are allowed to assess risk and adjust their policies accordingly, they cannot deny coverage on the basis of stereotypes or assumptions about a particular age group. If an insurance company is found to be refusing coverage based on assumptions that lack a basis in fact, they could face legal consequences.
It’s also worth noting that many insurance companies strive to ensure that their customers understand their policies, regardless of age. Insurers are typically required to provide clear explanations of coverage options and exclusions, and they should be prepared to assist any customer who has questions about their policy.
If someone feels they have been unfairly denied insurance based on age or other discriminatory practices, it may be beneficial to reach out to a state insurance commissioner or a legal expert specializing in insurance law to explore their options.