Extraordinary Life Circumstances Exception

What Does Extraordinary Life Circumstances Exception Mean?

An extraordinary life circumstances exception occurs when an insurance company considers an unusual event that may have negatively impacted a person’s credit score.

Insuranceopedia Explains Extraordinary Life Circumstances Exception

If an insurance applicant or policyholder qualifies for an extraordinary life circumstances exception, their credit score may not be considered when making an insurance decision.

For example, if a sudden medical emergency negatively impacts their credit score, they may be granted an exception. In such cases, if they were applying for auto insurance, the insurer could overlook their credit score when determining their coverage.