Is it permissible for an insurance company to legally deny coverage to someone based on their age, under the assumption that they may not comprehend an exclusion? For instance, if an 80-year-old man is denied an insurance quote simply because of his age and the belief that he might not grasp that his policy does not cover flood damage, is this assumption justifiable? Can insurance companies operate on 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?
Insurance companies can consider various factors when determining eligibility for coverage, including age. However, they cannot legally discriminate against someone based solely on their age. The refusal of insurance based on the presumption that an individual may not understand specific policy terms could be seen as age discrimination, which is generally prohibited in many jurisdictions.
Insurance companies are required to ensure that their products and services are accessible and clearly communicated to all potential clients, regardless of age. They have an obligation to provide adequate information about policy exclusions and coverage terms, ensuring that clients understand what they are purchasing.
If an insurance company is refusing to provide coverage based on an assumption about a person’s understanding due to their age, that may raise ethical and legal concerns. It could be beneficial for the individual in question to seek clarification with the insurance company or consult a legal expert to explore their options.