Legal Question in Insurance Law in Arkansas

insurance premuimns recharged from previous months

If an insurance company changes you to high risk, can they go back to the previous months that you have already paid when you weren't high risk and charge you for high risk and make you pay the difference in your premuim?


Asked on 1/31/01, 10:02 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: insurance premuimns recharged from previous months

It depends. If the risk factors which impose a "high risk" rating on the insured existed at the begining of the policy but were concealed from the insuror, and later discovered, then retroactive application of the factors and thus increased premiums for "high risk" are appropriate.

If the factors developed during the policy period, then the answer is no, retroactive application is not proper.

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Answered on 3/15/01, 10:39 pm


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