When an insurer makes changes to premium rates, the insurer must notify policy owners within how many days of the change?

When an insurer makes changes to premium rates, it is required to notify policy owners within 15 days of the change. This regulatory requirement ensures that policyholders are kept informed about changes that can impact their financial obligations and allows them to make any necessary decisions regarding their coverage. This timeframe is considered reasonable to provide policyholders with adequate notice to review their policy in light of the new premium rates, assess their affordability, and determine if they need to modify their coverage or seek alternative insurance options.

Timely communication helps foster transparency and trust between insurers and policyholders, reinforcing the importance of keeping clients aware of significant changes to their policies. While other timeframes such as 7, 30, or 45 days might seem reasonable, the 15-day requirement has been established as the standard to balance the need for prompt communication with allowing policyholders enough time to respond to the change.