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either 1 - this insurance company doesn't want you as a customer (wich can happen) because you dont represent a viable risk (you are not their target customer). In this case, they can only A) refuse you or B) have a huge premium wich will force you to go somewhere else.
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Mercury is known for this, I had to switch from Mercury to esurance after a hit and run on my parked car. It took a letter from my attorney to get them to pay market value for my car after a month of dealing with them. I even went as far as filing a complaint with the California Departement of Insurance. I've been with esurance for the past 3 years and they've been excellent.
http://www.consumeraffairs.com/insurance/mercury.html