Insurance Rate Increase Explanation

Dear Felix



[Date]

[Addressee]

Dear [Name]:

Re: [Regulation]

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 [specific illness] be covered in the same manner as any other injury or disease.

"Complications" is defined as anything other than a normal treatment. 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 $[dollar amount] and the new spouse rates will be $[dollar amount] ; the new spouse and children rate will be $[dollar amount] and the new children only rate will be $[dollar amount].

If you have any questions regarding these rate increases due to the change in regulations, please feel free to call.

Very truly yours,

By:Lydia