Why might an insurance company send a 'Trailing Notice'?

A 'Trailing Notice' is typically used by insurance companies to provide important updates regarding policy changes or renewals. This notice can inform policyholders about modifications to their coverage terms, conditions, or any other relevant information that significantly affects their policy.

For instance, if there are changes in the coverage limits, endorsements added, or alterations in exclusions, a trailing notice serves to ensure that the insured is kept informed and can make decisions based on the most current information. This promotes transparency and helps maintain a good relationship between the insurer and the insured.

While advertising new policies, offering premium discounts, or sending payment reminders may also be essential functions for an insurance company, they do not align with the specific purpose of a trailing notice, which focuses primarily on updates related to existing policyholder agreements.