Declination Insurance Definition


When evaluating a policy application, an insurance company can accept, amend or decline the applicant. Understanding the declination process will help you determine the strategy you should take to obtain coverage through another insurance carrier.


An insurance declination is the insurance company’s act of rejecting an application for insurance coverage.

Declination Criteria

The criteria used to accept or decline an application are typically decided upon by each individual insurance company. State laws may prohibit insurance companies from declining applicants for certain reasons, such as income, race or religious affiliation.

Notification to Applicant

Insurance departments typically require insurance companies to notify applicants of declinations in writing. In some cases, you must make a written request for notification, usually within 10 days of the declination.


A declination may impact your ability to obtain insurance through another company, particularly if you have been declined life or health insurance coverage.

Next Steps

If your application for insurance coverage is denied, you may be able to obtain coverage through your state’s assigned risk pool. Most states have assigned risk pools for auto and homeowner's insurance, and some also accept applicants for health insurance coverage.

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