Insurance Policy? Answer only if you know...?

Question

1) Why do Insurance Policies change?
2) Why are there hidden charges?
3) What are some common customer complaints relating to insurance policies?

Answer 1

Insurance policies evolve with time to better cater to the changing needs of consumers.
There are always hidden charges everywhere you go, even banks.
Common customers complaints are not getting claims on time.

Answer 2

It sounds as if you are trying to get somebody to do your homework for you.

Policies change all the time because the risk changes or the company decides the terms are not workable in conjunction with its business plan.

Hidden charges are always disclosed upfront, so there are no hidden charges. You just need to know where to look for them and how to ask about them.

Since an insurance policy is always provided in writing to the customer in advance......there is NO EXCUSE for a policyholder to not know what was in it.

If you don't read the policy and don't care to read it, then you have no right to complain about it if you find out later that it didn't cover something.

READ YOUR POLICY. It will answer all the questions and if you are still curious about a coverage then ask the company or your agent.

Answer 3

1. If a policy is inforce, there are only a few variables depending on the type of coverage, ie. term, universal life or whole life. If this a different type of policy, it would be in the small print. Depending on mortality factors, claim risk, etc...it can change within the limits set up.

2. All charges have to be disclosed. People say they are hidden as they are generally in the small print and the agent does not tell you about them.

3. There was not full disclosure.

Answer 4

1. Because the laws change, and the policies have to change to reflect the legal environment. They are contracts - subject to contract law.
2. I've never seen "hidden charges" on a policy - they are always disclosed up front. I HAVE seen clients that don't want to hear details, and don't listen to the things I try to "disclose" up front. I get them to sign off on it (they don't read the paper, either), so when they come back later complaning that they didn't know, I can whip that piece of paper out.
3. The most common complaint is that something isn't covered (when the client didn't want to purchase the extra coverage). The second most common complaint is that "they never got the bill" when they don't pay it. I don't believe it - I think they just don't pay bills.

Answer 5

1. Mostly likely because there is either a material change in the risk, state regulations change, or there is an ambiguity that needs to be resolved in a prior contract

2. Because some companies are unethical, most times though they arent "hidden", the consumer just fails to read everything first.

3. no real way to answer that one..common complaints on what type of coverage, the complaints from homeowners are very different than that of large company HR departments on their health insurance plans...