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:
Auto Insurance
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.
Homeowner's Insurance
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.
Life 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).
Health Insurance
There are instances where an insurance company must issue a health insurance policy
regardless of the factors listed here. However, there are 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).
Continue learning tips on purchasing insurance?
Visit the Application Process
page or go back to the Purchasing Insurance page.
