Is it legal for an insurance company to deny coverage to someone based solely on their age and the assumption that they might not comprehend an exclusion? For instance, can an 80-year-old man be refused an insurance quote simply because he is older and may not fully understand that his policy does not include flood coverage? Are insurance companies permitted 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 general, insurance companies are allowed to apply certain underwriting criteria when evaluating applications for insurance, which can include age as one factor among many. However, they cannot discriminate based on age in a way that violates applicable laws, such as the Age Discrimination Act or similar regulations in various jurisdictions.
When it comes to understanding policy exclusions, while insurers have an obligation to ensure that their customers understand their policies, it is not permissible for them to make blanket assumptions about someone’s comprehension based solely on age. Each applicant should be evaluated on an individual basis, and insurers typically have a duty to provide clear information about the terms and conditions of their policies.
If an 80-year-old man is being outright refused coverage solely based on his age and an assumption about his ability to understand the policy, this could potentially be viewed as age discrimination. If someone feels they have been unjustly denied coverage, it may be helpful for them to reach out to a legal professional or a consumer protection agency for guidance on their specific situation and options for recourse.