QUalifying for insUrance

Insurance companies will evaluate whether they will issue a policy based on certain criteria, such as:
• your age
• your medical history
• any previous claims you have made
• the amount of coverage you are requesting.
No matter what type of insurance you are applying for, be sure to answer all questions on the
application fully and honestly. If you don’t, your policy could be cancelled and any claim you make
in the future could be refused.
How are premiums calculated?
Your premium is based on the probability that you will make a claim. Factors such as the ones listed
previously may affect the cost of your premiums. Insurers usually charge higher premiums to people
who they think are more likely make a claim. People whom insurers consider less likely to make a claim
will usually pay lower premiums. For example, if you have a history of medical issues, you may pay
higher life insurance premiums than someone with few medical issues. If you have several accidents
on your driving record, you may pay higher auto insurance premiums than someone who has no
accidents on their driving record.
Maintaining yoUr coverage
There are certain things you need to do in order to maintain your insurance coverage.
Pay your premiums on time. If you do not pay your premiums on time, your policy may be cancelled
for non-payment. Your coverage will stop and you will no longer be protected. If your policy is cancelled
due to non-payment, you may find it difficult to get coverage in the future, or you may have to pay
higher premiums.
For some types of insurance, you must tell your insurer as soon as possible about any change in your
circumstances that may affect the insurer’s ability to cover your loss. For example, your automobile
insurer will need to know if you have convictions for driving offences.