If an insurer does not notify the insured regarding a rate increase of 25% or more within the required notice period, what must the insurer do?

When an insurer imposes a significant rate increase of 25% or more, they are typically required to notify the insured within a specific notice period. If they fail to provide this notification, the insurer must extend the policy for an additional 60 days. This provision allows the insured to have continued coverage while they assess their options, ensuring that they do not face a sudden lapse in protection due to a lack of communication from the insurer.

This requirement is in place to protect consumers, allowing them time to make informed decisions regarding their insurance coverage. It ensures that insured individuals are not caught off guard by sudden changes in their policy terms or costs. By extending the policy, the insurer complies with regulations designed to promote fair treatment and transparency in the insurance market, giving insured parties a crucial timeframe to explore alternatives or maintain coverage without interruption.