2. Premium Rate Guarantees
| It is not permitted for any insurance company to enter into any arrangement with any insured for a period in excess of one year for medical expenses insurance with rates guaranteed for more than one year. Policyholders can choose to renew their annual policy with the same insurance company, but this must be on terms negotiated and agreed at renewal. | |||
| It should be noted that the use of prescribed formula for renewals, even if it takes into account the loss experience for the first year is not acceptable. Full allowance for current inflation and future trends expectations must be made for all quotations at the time of the renewal. |