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📝 '''Notification of change''' is a formal communication from a [[Definition:Policyholder | policyholder]] to an [[Definition:Insurance carrier | insurer]] or [[Definition:Broker | broker]] advising of a material alteration in the circumstances originally disclosed at [[Definition:Inception | inception]] or last [[Definition:Policy renewal | renewal]] of an [[Definition:Insurance policy | insurance policy]]. Changes that typically require notification include modifications to insured property, shifts in business operations, changes of address, acquisitions or divestitures, and alterations to risk characteristics such as the installation of new equipment or the commencement of a new activity. In both personal and [[Definition:Commercial insurance | commercial lines]], the obligation to notify changes is usually embedded in the policy's [[Definition:Policy condition | conditions]], and failure to comply can affect the validity of [[Definition:Coverage | coverage]].

🔄 Once an insurer receives a notification of change, the [[Definition:Underwriting | underwriting]] team evaluates whether the altered circumstances fall within the existing [[Definition:Policy terms | policy terms]] or require an amendment. If the risk profile has shifted materially, the insurer may issue an [[Definition:Endorsement | endorsement]] adjusting the [[Definition:Premium | premium]], [[Definition:Deductible | deductible]], or [[Definition:Exclusion | exclusions]], or it may decline to continue coverage for the changed exposure. In [[Definition:Delegated underwriting authority (DUA) | delegated authority]] arrangements, a [[Definition:Managing general agent (MGA) | managing general agent]] or [[Definition:Coverholder | coverholder]] may handle mid-term changes within the parameters of its [[Definition:Binding authority agreement | binding authority agreement]], referring only exceptional modifications back to the capacity provider. Digital policy administration systems increasingly enable policyholders to submit change notifications through self-service portals, triggering automated re-rating and endorsement issuance in near real time.

⚠️ Timely and accurate change notifications protect both parties. For the policyholder, prompt disclosure preserves the right to claim — in many jurisdictions, a failure to report a material change can give the insurer grounds to reduce or deny a [[Definition:Claim | claim]] under principles of [[Definition:Utmost good faith | utmost good faith]] or, in jurisdictions that have reformed this doctrine, under proportionate remedy provisions such as those introduced by the UK's [[Definition:Insurance Act 2015 | Insurance Act 2015]]. For the insurer, receiving change notifications in a timely manner enables accurate [[Definition:Exposure management | exposure management]] and prevents the silent accumulation of unpriced risk in the [[Definition:Book of business | portfolio]]. In [[Definition:Multinational insurance program | multinational programs]], where local policies must remain aligned with a [[Definition:Master policy | master policy]], change notifications at the local level must cascade upward to ensure consistency across the program.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Endorsement]]
* [[Definition:Material change]]
* [[Definition:Utmost good faith]]
* [[Definition:Mid-term adjustment]]
* [[Definition:Policy condition]]
* [[Definition:Exposure management]]
{{Div col end}}

Definition:Notification of change - Revision history

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