Is it permissible for an insurance company to legally deny coverage to someone based on their age and the assumption that they may not understand their policy exclusions? For instance, if an 80-year-old man is turned down for a quote because the insurer believes he might not comprehend that his policy does not include flood coverage, is this a valid presumption for the insurance company to make?
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?
Insurance companies can use certain factors to assess risk when providing quotes, including age. However, they cannot discriminate against individuals based solely on age or make assumptions about their ability to understand policy terms without any evidence. In many jurisdictions, there are regulations that protect against age discrimination in insurance, requiring companies to justify their underwriting decisions based on objective risk factors rather than assumptions about a person’s comprehension.
If an insurance company refuses coverage to someone based on their age or a presumption of their understanding, it could be viewed as discriminatory and potentially illegal, depending on the laws in that area. It’s important for consumers to advocate for their rights and seek clarification or appeal decisions if they believe they are being unfairly denied insurance. Additionally, it may be helpful for the individual to consult with an insurance broker or legal expert who specializes in insurance law to explore their options.