Is it permissible for an insurer to refuse to renew a policy solely because the insured is elderly?

Is it permissible for an insurer to refuse to renew a policy solely because the insured is elderly?

• A. Yes
• B. No
• C. Only for commercial policies
• D. It depends on the insurer

Answer: (B)

Age cannot be the sole basis for refusing to renew a policy. Insurers may consider real risk factors and underwrite or price based on those, but using being elderly as the only reason to nonrenew is treated as unfair discrimination under Texas insurance law. The insurer may nonrenew for legitimate, non-age-related reasons, or adjust terms based on risk with other appropriate factors, but simply targeting an elderly insured for nonrenewal isn’t permissible.

Age cannot be the sole basis for refusing to renew a policy. Insurers may consider real risk factors and underwrite or price based on those, but using being elderly as the only reason to nonrenew is treated as unfair discrimination under Texas insurance law. The insurer may nonrenew for legitimate, non-age-related reasons, or adjust terms based on risk with other appropriate factors, but simply targeting an elderly insured for nonrenewal isn’t permissible.