Insurance Company is changing the rules

[paulann99]

What is the name of your state (only U.S. law)? Florida
After seeing advertisements for the lowest home insurance rates, I changed
my insurance company. I saw in the paper where this insurance was not
requiring some details before insuring new customers. They however, issued
many new insurance policies in 2008. Now, we are receiving a letter from
the insurance company saying we must have this inspection done within
30 days and faxed to the company or they will not honor the discounts
they gave us to convince us to insure with them. Is this a class action
possibiluity against this insurance company?What is the name of your state (only U.S. law)?

[20pilot]

Remember the saying: If it is too good to be true, it is not true.

Here's some logical thinking: Insurance is a business and they need to take in more money than they are paying out to remain in business. If they are not taking in much money from premiums, they will not be paying out.

Right now, all you can do is comply with their requests. Next, talk to the insurance commissioner to see if any laws or rules are being violated. My guess is that everything they are doing is allowed and was disclosed in the fine print that you did not read.

As for class action lawsuit, what are you expecting to gain? If the lawsuit wins, the lawyers will keep most of the money. In the last couple of years, there was a major class action win against Visa for over-charging on international transactions. I personally lost several hundred dollars over the period of the class action. Visa paid out hundreds of millions. After the lawyers were paid, do you know how much money I saw? $25. Yes, I saw twenty five dollars to compensate me for my several hundred dollars while the lawyers got several hundred millions. That is how class actions work. And one more thing. Visa changed their policy. They now charge a surcharge instead of padding the exchange rates. The end result is that it now costs the customers even more. Thank you class action lawyers.

[ecmst12]

Actually you have 2 choices. Comply with their request, or find insurance from a different company. Vote with your wallet.

[moburkes]

They didn't change the rules. Insurance companies will often provide a discount upfront, but, depending upon how the policy is sold, they will either as for proof prior to the bind (if you purchased it face to face from the agent) or after the bind (if you purchased it online or by telephone). They will always have the right to verify the information you provided. Period.

If they give you a discount for having an alarm, they are allowed to ask for proof of the alarm. If they give you a discount for having both home and auto and you only purchase the home policy, they are allowed to remove the multi policy discount. This is nothing new or different.


If I have misunderstood what you are asking for, please let me know.

[JustAPal00]

The mistake you made was switching insurance carriers when your home was in poor condition. Never bring attention to yourself when you are trying to slide by!

[moburkes]

Now that I read the OP more closely, I'm curious to know what the ad that the reader thought that they wouldn't check the details. That wouldn't even be a legal advertisement.