What does Sola require from policyholders when increasing coverage limits mid-term?

When a policyholder increases coverage limits mid-term with Sola, they are required to make pro-rated payments on the new coverage limit. This means that the additional premium is calculated based on the difference between the old and new coverage limits for the remaining duration of the policy term. Pro-rating allows the insurer to charge the policyholder only for the extra coverage they are purchasing, rather than requiring a full upfront payment for the extended coverage for the entire term, which would be less equitable for a mid-term adjustment.

This approach ensures that policyholders pay a fair amount based on their coverage needs at the time of the change, reflecting only the portion of the term that the increased coverage will be active. It allows for flexibility and responsiveness to changing circumstances without imposing a larger financial burden than necessary at the outset.