Definition - What does Decline mean?
Decline, in the context of insurance, refers to the rejection of the request for insurance coverage. An insurance company commonly declines an insurance application if the business or the person applying represents too high of a risk for the insurance company to pay out too much money. Each insurer measures risk based on company and specific standards in the field.
Insuranceopedia explains Decline
Since an insurance company prefers to have policyholders that represent lower risks, they tend to decline insurance applications from entities that represent higher risks and chances of claims. The decline of request for insurance coverage depends on the standards of an insurance company, so one insured declining an application does not mean all other insurers will decline it as well. An appeal can be a solution to the rejection, and it is usually recommended to seek the services of a risk specialist to obtain a policy in extreme cases.
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