Roll-on coverages

Bulletin 143

Roll-on coverages

March 25, 1985

The Maine Bureau of Insurance continues to be concerned that some agents and/or insurers may be

engaged in the practice of automatically adding optional insurance benefits or coverages to their

clients' policies without obtaining the prior consent or approval of the policyholders. This procedure is

often referred to as "rolling-on" coverage.

The Bureau of Insurance deems "roll-on" coverage to be a deceptive and unfair trade practice in

violation of Title 24-A M.R.S.A. Chapter 23. Appropriate enforcement action will be taken against any

licensee who engages in this practice.

The following are not considered "roll-ons" by the Bureau:

1. Inflation guard or similar contractual coverages that have been pre-sold and contemplate periodic

stated increases in benefits. This can include agreements acknowledged by a policyholder to provide

increases on a prearranged schedule.

2. Increases in benefits implemented by an agent who has been pre-authorized by a policyholder to

amend the policy as he or she determines is necessary for adequate protection of the insured.

3. Any changes mandated by statute.

4. Benefit liberalizations for which no additional premium is charged.

Agents and insurers should continue to evaluate a policyholder's requirements in light of such factors

as inflation, new coverages

becoming available and changes in the insured's circumstances. Except as stated above, proposed

changes in coverage shall not be effectuated without the prior approval of the insured.

Theodore T. Briggs

Superintendent of Insurance

NOTE: This bulletin is intended solely for informational purposes. It is not intended to set forth legal

rights, duties or privileges nor is it intended to provide legal advice. Readers are encouraged to

consult applicable statutes and regulations and to contact the Bureau of Insurance if additional

information is needed.