Why you have been declined insurance or your policy was not renewed
Underwriting rules are the reasons an insurer can non-renew or decline to issue you an insurance policy, coverage or endorsement. When shopping for or renewing auto insurance, know the insurance company’s underwriting rules.
While underwriting rules differ from company to company, these are some of the more common rules:
whether you or drivers in your household have had more than a certain number of driving convictions or at-fault accidents
whether you have had an auto insurance policy cancelled because you failed to pay your premium
whether you have failed in the past to provide correct or complete information when applying for auto insurance
Underwriting rules must be filed and approved by FSRA.
Once we have reviewed and approved these rules, insurance companies may not use other rules to deny you coverage.
If an insurance company refuses to sell or renew your insurance policy, the company must advise you in writing of which rule (or rules) it used to deny coverage.
Underwriting rules that do not comply with the Insurance Act or the regulations, such as those contrary to public policy, are prohibited. These include rules which deny insurance to individuals based on such factors as:
physical or mental disability
where you live or the location of the vehicle
whether you are newly licensed or a driver new to Canada
If your automobile policy has been in effect for more than sixty days, the insurer may only terminate your contract for one or more of the following reasons:
non-payment by the policy holder
the policy holder has given false information about the automobile
the policy holder has knowingly misrepresented or failed to disclose information on an application for insurance
the policy holder did not inform the insurer of a material change of risk. Examples of material change could include not informing the insurer of additional drivers, not informing the insurer if you have moved, and not informing the insurer in a change of how you use your automobile (for work, etc.)