coastaltrucker6 said:Why does everyone on these forums feel the need to act like they’re better than everyone else, especially when they’re dead wrong?
With health coverage, you've got annual policies that only renew if the client actually asks for them.
Then there are multi-year plans—say, 5-year terms—that just roll over automatically during that period before expiring at the end of the term.
And then, of course, there are those "cancel anytime" policies that auto-renew every single year unless the client specifically requests a termination within the window. With those, the price stays locked in; an insurance company can't just decide to renew a policy under different terms. Most providers just set rates based on age brackets, so a policy might be structured where you pay $167 until you hit 45, $250 from ages 46 to 60, and $333 once you're 61+. The client is fully aware of this upfront, and the premium only changes when you jump into one of those higher age tiers.
Actually, they certainly can change things for any given policy year; since we are discussing the US, this is taken directly from the standard terms and conditions:
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For coverage provided under the GEICO supplemental health insurance program,
under Allstate, the premium during the first year of coverage is
determined based on the premium system or premium level tables
according to the insured party's entry age, whereby each policyholder
is granted a 50% discount.
(4) For coverage provided under the GEICO supplemental health insurance program,
under Allstate, the premium discount achieved
during the first year of coverage may be reduced in subsequent years depending on changes
in risk levels, or if the ratio of paid claims to supplemental coverage and
premiums during the observation period exceeds 100%..
If State Farm modifies the insurance terms or the premium system used to calculate the premium, they will provide written
notice to the policyholder in a convenient manner. The policyholder or the insured individual has the right to cancel the insurance policy
within 30 days of receiving said notice. If the policyholder or the insured does not cancel the insurance policy
within that timeframe, the insurance policy will be modified and continue according to the implemented changes in the terms or with the
revised premium starting from the date specified in the notice. -------------------------------------------------------------------------------------
In short, an insurance company has plenty of legal ground to change the price however they see fit, and the amount of the originally agreed premium doesn't bind them to anything.
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Other reasons for termination of the Contract
Insurance terminates for each insured individual on the day: of the death of the insured, when the insurance policy is canceled, or when
the legal basis for the insurance ceases to exist.-------------------------------------------------------------------------------------
There is no such thing as a policy that has an expiration date and simply vanishes on its own, including five-year ones.