Canada Life Insurance Turned Down – Legally Obliged To Give Reason Why?
Posted December 27, 2009 – 4:24 am in: structured settlements FAQMy partner had his Canadian Life Insurance application turned down. The company said they are not obliged to give a reason why. I thought if we asked they need to give us an answer. Are life insurance companies legally obliged to give a reason and if so do you know a particular law we can quote them. Thanks so much.
Tags: Canada, Down, Give, Insurance, Legally, Life, Obliged, Reason, Turned
2 Comments
There is no law that mandates that a company must offer life insurance to an applicant. It is a mutually agreed upon transaction between the applicant and the company.
The applicant might decide the premium is too high and decline the insurance. The applicant is not legally obligated to tell the company why they chose to decline the offer.
Conversely, the company doesn’t have to tell the applicant why it chose not to offer the coverage. There is no law that mandates that a company has to disclose the reason for not choosing to enter into a contract.
It would be like offering your home for sale and then expecting an explanation from each prospective buyer why they chose not to buy your home. No one is obligated to enter into a contract and no one is required by law to tell you why they chose not to enter into a contract.
If they turned your partner down for health reasons the insurance company will usually send the medical results to your doctor. Just ask them.