Did you know that insurance companies cannot change your policy without prior notice? It’s true! Under N.C. Gen. Stat § 58-41-20(d),whenever an insurer lowers coverage limits or raises deductibles or premium rates other than at the request of the policyholder, the insurer shall give the policyholder written notice of such change at least 30 days in advance of the effective date of the change.” That’s a lot of legal terms. Simply put, if your insurance company wants to lower the coverage under your policy AND you did not request the change, they have to tell you in writing thirty days before the change takes effect. The notice also has to state exactly why the change is being implemented. If the insurance company fails to do so, you could be entitled to restitution (a fancy of way of saying an amount of money necessary to recoup all of your losses).  Also, the insurance company could have their license revoked and suffer other monetary damages.

Under North Carolina law, insurance companies are regulated to protect the public from abuses of those industries. This section of law can apply to life, health, auto, home, renters, boat, motorcycle and many other types of insurance that protect individuals and companies alike. If this has impacted you, the first step to seeking redress is to object to the change to your insurance company once you first notice it. If they never provided the notice, and you had a claim denied because of the change, you should seek legal assistance immediately.



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