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Ely
Ely, Counselor at Law
Category: Legal
Satisfied Customers: 101966
Experience:  Private practice with focus on family, criminal, PI, consumer protection, and business consultation.
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Are there caps on how much an insurance company can raise your

Customer Question

Are there caps on how much an insurance company can raise your life insurance premium? My husband's $250,000 term policy went from $550/quarterly payment to $880/quarterly payment overnight.
Submitted: 6 years ago.
Category: Legal
Expert:  Ely replied 6 years ago.
Hello,



Thank you for the opportunity to assist you. Please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.



This depends - does your original policy contract allow for a raise, and if so, does it not mention any caps?



Customer: replied 6 years ago.

I am at work and do not have the entire policy available to review.

 

We live in Pinal County, Arizona.

The policy was entered into when we lived in Riverside County, California

Expert:  Ely replied 6 years ago.
I understand, thank you. Normally, the contract controls the matter, and if the contract is silent on the matter, then the state/federal law applies to fill in the blanks. In this situation, the law does NOT provide any specifics caps. However, if the premium is completely too much, you can have it lowered by the court if the Judge agrees it 'shocks the conscience of the court.'So again, it first depends on the contract, and then if the contract is silent, then there are no limits, but if it is astoundingly too much, it can be lowered via court order.

I'm here if you need any more clarification or follow up information.



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