Bulletin S-10
November 7, 1983
AUTOMATIC INCREASE OR ADDITION TO COVERAGE
It has come to the attention of this Department that agents and, in some instances insurers, are automatically adding or increasing coverages which are considered optional, without prior knowledge and consent of the policyholder. This procedure is often referred to as a "roll-on."
Any addition or increase to a policy without prior knowledge and consent of the policyholder is not permitted by this Department and disciplinary action will be taken against all licensees who continue this practice.
"Roll-ons" should not be confused with the type of homeowners endorsement known as "inflation guard" which offers an increase in coverage as the value of the insured property rises and is agreed upon by the agent and prospective policyholder when the coverage is purchased
Any additions or increases in coverages which are mandated by statute are not considered "roll-ons."
Although we encourage agents and insurers to apprise policyholders of any additional optional coverages, and of the value of increases, it is imperative that additions or increases not be automatically added to a policy and the premium increased.
Peter W. Gillies
INSURANCE COMMISSIONER