Renewable Conditions & Premium Increases for Florida Health Insurance Policies

Renewable Conditions and Premium Increases

Conditions for renewals and premium increases vary from policy to policy; ask your insurance agent or company representative about the conditions of the policy under consideration. You should also know these key terms:

Conditionally renewable

Under this condition, an insurance company may renew a policy until the policyholder reaches a certain age. The company may decline renewal or increase premiums under specified contract conditions. For example, a company may decline the renewal of your policy because of a career change. Most companies decline renewals for reasons other than a policyholder's failing health.

Guaranteed renewable

This means a company must renew a policy for a specific period. Companies must raise premiums consistently for all insureds in the same class.

Noncancelable

Under this condition, an insurance company can't cancel your policy or increase your premium if you pay on time.

Optionally renewable

This means an insurance company may cancel a policy at the end of the contract period for any reason, and increase premiums at any time.

Short term, nonrenewable

This means that you can't renew your policy at the end of the policy term. Premiums remain constant for the policy period, which usually lasts a few months.

Under Florida law, your company must give you a 45-day notice, in writing, of cancellation, nonrenewal or premium change; HMOs must provide notice within 30 days. However, your company must only provide a 10-day notice, in writing, for a cancellation due to your failure to pay premiums.