The Explanation of Insurance Rate Increase letter. Insurance may be your back-up umbrella in a rainstorm, but sometimes circumstances change.
And because of that, claimants will want a detailed explanation for why they are required to pay a different amount than they may have originally agreed to.
This particular version of the template applies to the changes of an insurance policy for medical care for pregnant claimants.
The letter however can easily be adapted to any other subject within a policy.
We are in receipt of a directive from [name of company] concerning the above captioned Regulation. This new regulation went into effect on [date] and requires that complications of pregnancy be covered in the same manner as any other injury or disease.
"Complications" is defined as anything other than a normal delivery. This is applicable to any employee, dependent spouse or dependent child.
Due to the potential increase in claims, it has become necessary to increase our quoted rates to comply with this regulation. The new employee rate will be $_____ and the new spouse rates will be $_____; the new spouse and children rate will be $____ and the new children only rate will be $_____.
If you have any questions regarding these rate increases due to the change in regulations, please feel free to call.