Question

When deciding to issue or to decline a standard fire, homeowners or farm policy, an insurer may not consider a ____________________ as a basis for declination?

Answer 1

Insurers may not consider pre-existing conditions as a basis for the declination of standard fire, homeowners, or farm policies.

Step-by-step explanation:

When deciding to issue or decline a standard fire, homeowners, or farm policy, an insurer may not consider a pre-existing condition as a basis for declination.

A pre-existing condition refers to a condition or situation that existed before the policy was issued. Insurers are typically prohibited from using pre-existing conditions as grounds for denying coverage, as it would discriminate against individuals with prior health issues.

By not considering pre-existing conditions, insurers aim to provide coverage to individuals regardless of their health status.