Can an insurance company buy another insurance company and nullify existing agreements?
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Can an insurance company buy another insurance company and nullify existing agreements?
I purchased long term care insurance when I retired at a set premium price. Another insurance company bought out the original and then increased the premium price 10% for 3 consecutive years. Are there regulations prohibiting this price increase?
Asked on February 20, 2012 under Insurance Law, Michigan
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Yes there may be regulations prohibiting this price increase on a set contract. To do otherwise could be construed as a material breach of contract, bad faith insurance coverage and just overall unfair and deceptive activity. You need to file a complaint with the insurance department in your state and the state attorney general. That should get the ball rolling but stay on top of it.
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