Being refused insurance means that an insurance provider has declined to provide you with coverage. This typically happens when the potential insured is viewed as being too great a risk by the insurer, often because of the applicant’s current or past health conditions, their age, or their profession.
Insurance providers use risk analysis when determining whether to accept an applicant. Insurers look at past claims to try to calculate an applicant’s propensity to make a claim in the future. If the insurer believes that the applicant has a higher risk of making a claim, they will typically refuse insurance.
When someone is refused insurance, they’ll receive a formal notification from the insurance provider as to why they have been declined. Depending on the situation, it may still be possible to find another provider willing to cover the applicant, but this can be difficult and will often involve paying a higher premium rate.