18.1.4 Occupation
Again, anyone who participates in a more dangerous occupation presents a higher risk as well. For instance, a pilot would present a higher risk than a person who spends his time in an office.
If a change of occupation occurs without the company's knowledge and a claim is filed, the company may adjust the benefit amount accordingly. For instance, if John (the insured) purchased his policy but then changed to a higher risk profession and suffered a disabling injury, the insurance company can adjust the benefits paid to reflect the higher rate that would have been charged in the first place. By the same token, if the purchaser changes to a lower risk profession, a refund could be made to the insured for the excess premium amount collected.
If the insured is found to have been engaged in any illegal act, or to be an accomplice to any illegal act, or is engaged in an illegal occupation at the time of loss, benefits are not payable.
Insurance companies provide their agents with guidelines on recognizing high-risk occupations. For instance, an occupation such as an airplane pilot would present a higher risk factor than a bus driver. Based upon the guidelines, the insurance company can choose to either issue the policy at a higher premium rate or deny coverage altogether.
There are five classes of occupational risk, from AAA (highest rating - lowest risk), to AA, A, B and C (lowest rating - highest risk).
Noncancelable policies are offered only to those presenting the higher ratings.
