Once your application for insurance is received by the insurance company, they decide if the applicant or the property is eligible for coverage. All insurance companies use guidelines to determine eligibility. When the underwriting process is complete the company determines the final premium.
The company may review some or all of the following items, depending on the type of policy:
The company reviews the type of vehicle, the age of the vehicle, the age of the drivers, the experience of the drivers, the violations received by all drivers, the number of accidents for all drivers, where the vehicle is kept, how the vehicle is used, and how many miles are driven each year.
The company reviews the construction of the home (frame, brick, etc.), the year the home was built, the age, type, and construction of the roof, where the home is located, how the home is used, the square footage, whether the home has items that qualify for hurricane mitigation credits, prior claims history, and the existence of prior insurance.
The company may review your health history, your age, and your occupation to determine eligibility. The company may elect to cover you but exclude benefits if you die from certain illnesses (called riders or exclusions).
There are instances where an insurance company must issue a health insurance policy regardless of the factors listed here. However, there are also instances where the company will base their decision to cover you on the following: Your age, your health history, and your occupation. They will normally ask for proof of any previous health insurance as well which may satisfy any pre-existing condition exclusion in the policy. The company may elect to cover you but exclude benefits for certain illnesses (called riders or exclusions).