What does "refused insurance" actually mean?

Liverpool68

A couple of years ago I asked Endsleigh Insurance for home contents cover, but because at the time I had criminal convictions Endsleigh declined to insure me.

My convictions are now spent and so I am under no legal obligation to declare them to insurance companies. However, on application forms there's always the question, "Have you had insurance refused?"

My question is, given that Endsleigh is an insurance intermediary, have I actually been refused insurance by an insurer? I'm also curious as to how insurance companies can know if someone's been previously declined. Do insurance companies keep a record of each and every application?

darky

Ed_Fisher wrote: »

A couple of years ago I asked Endsleigh Insurance for home contents cover, but because at the time I had criminal convictions Endsleigh declined to insure me.

My convictions are now spent and so I am under no legal obligation to declare them to insurance companies. However, on application forms there's always the question, "Have you had insurance refused?"

My question is, given that Endsleigh is an insurance intermediary, have I actually been refused insurance by an insurer? I'm also curious as to how insurance companies can know if someone's been previously declined. Do insurance companies keep a record of each and every application?

If they are spent under the Rehabilitation Of Offenders Act they do not need to be declared. Insurance refused means just that - they refused to cover you because of the convictions. You need to answer the question as a yes and explain that it was due to previous convictions that are now spentsiest way is to go to an Insuranc broker for cover as if you go online no one will cover you because of the "refused" question.

Incidentally if you were refused through Endsleigh an Insurer wouldn't know about this
EaSW

Coolcatfish

You haven't been refused.

If you were with a provider and you tried to claim, they found it to be fraudulent and then they cancelled you policy and refused to insure you again....that's being refused insurance.

If a company won't cover you because of a conviction or your age etc etc thats just one of those things that the specific provider involved sets out, nothing you have to declare.

FlameCloud

Care to back that up with evidence?

The question doesnt put any limits on it at all.

raskazz

Coolcatfish is right IMO. A failure to quote because you fall outside their criteria isn't a refusal. 'Refused insurance' really means that you have either had a claim rejected (for reasons other than the claim not falling under the scope of the policy cover) or an insurer has declined to offer you a renewal (unless the insurer declined simply because they were withdrawing from the market entirely etc.)

For example, a lot of motor insurers won't quote for any 17 year old. If a 17-year old called one of these insurers and they declined to quote, if this was a refusal then he would have a hell of a lot of trouble arranging insurance for the rest of his life for a totally innocent reason!

Coolcatfish

FlameCloud wrote: »

Care to back that up with evidence?

The question doesnt put any limits on it at all.

I can't really back it up with any evidence I'm afraid but its a similar situation to say young drivers, loads probably get turned down for cover because of their age or their cars or maybe even motoring convictions they might have picked up but just because an insurance company decides they are too risky to quote for doesn't constitute the same thing as being declined cover, otherwise loads of people would have to tick the box.

It seems the original poster was too risky for the provider to quote for initially because however their underwriting works they've deemed people with convictions to be a risk they aren't prepared to take. Now though the convictions are spent and he shouldn't have any trouble getting cover.

If you had committed insurance fraud or didn't disclose something to an insurance company and you are a customer already, they tend to take a dim view of this and can cancel your cover mid term and generally won't touch you with a barge pole ever again.

Its basically the difference between a provider not being prepared to enter into a contract with you and a provider having to terminate a contract early and not ever wanting to insure you again because of whatever reason it is..

silvercar

I tried to get M&S home insurance and was turned down. The operator said that a note had come on her screen to make sure customer understands that this is not a refusal to insure but a decline to quote.

I didn't really understand the difference at the time, but comments on this thread explain it.