A unique impairment refers to a special condition in which a person is suffering from that makes him or her different from the standard applicant of an insurance policy.
These are typically health or medical conditions that are uncommon to the general population or to the profiles of policy holders of a particular type of insurance.
For example, a man in his twenties don’t usually suffer from hearing difficulties.
People with unique impairments that are life threatening might find it very difficult to purchase life insurance.
Even private medical insurance can be difficult to obtain. And if an insurer is willing to underwrite a policy for someone with such conditions, a premium that is higher than standard levels can be required.
Sometimes people are aware that they suffer from unique medical conditions and choose not to disclose them during application.
Such actions can present insurers with the right to void a policy should misrepresentation be determined.
Unique impairment is not limited to health conditions.
Some insurers of some types of policies can view the adverse financial standing of an applicant to be an unique impairment.
For example, an insurance company might choose not to do business with someone who has a history of bankruptcy. In this case, the impairment is of a financial nature that is uninsurable.
Morality can also be an issue with certain types of policies.
A person with a history of fraud and deception might be shunned by an insurer citing an unique impairment.