And so on. That's why your country retreat might cost more to insure than your suburban bungalow. In underwriting personal insurance, like property and automobile, the company has already decided what rules it will use to determine if an applicant is eligible for insurance. A risk either fits the company's criteria or it doesn't. If your particular risk doesn't qualify, you will have to modify it to meet the insurer's standards, or shop elsewhere for your insurance, and probably pay a bundle for it.
Life insurance works in a similar way.
You will be asked a number of questions on your application to determine your risk status. If the company decides you are an acceptable risk, it will agree to insure you. If not, it will refuse the risk, or will charge more to insure you. Registered Trademark of CIBC, CIBC Life Insurance Company Limited, CIBC General Insurance Company Limited, and The Personal Insurance Company of Canada are licensees of Mark. This Web site is intended to offer a range of information and opinions from a variety of sources.