Is it legal for an insurance company to deny coverage to someone solely based on their age, assuming they might not comprehend a policy exclusion? For instance, if an 80-year-old man is turned down for a quote because the company believes he may not understand that his policy does not include flood coverage, is this permissible? Can insurance companies make such assumptions?
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 have the right to set their own underwriting guidelines and may refuse to provide coverage based on various factors, including age. However, they cannot discriminate based solely on age or assumptions about a person’s ability to understand a policy.
In many jurisdictions, laws such as the Age Discrimination in Employment Act (ADEA) and various state insurance regulations prohibit age discrimination in insurance practices. Insurers must ensure that their refusal to provide coverage is based on legitimate underwriting criteria, such as health status, claims history, or risk factors, rather than assumptions about an individual’s cognitive abilities due to their age.
If an 80-year-old individual is denied a quote based on assumptions about their understanding of policy exclusions, this could potentially be considered discriminatory. If a person feels they have been unfairly treated based on their age, they might consider filing a complaint with their state’s insurance department or seeking legal advice to explore their options.
It’s important for consumers to know their rights and to seek clarification from insurance providers regarding their policies and practices.