Under what condition can an insurer file a premium surcharge?

The situation under which an insurer can file a premium surcharge relates specifically to the claims history of the insured. Filing a surcharge after two or more claims in the last three policy years reflects the insurer's assessment of risk. Essentially, this approach helps insurers adjust rates based on the likelihood of future claims based on past behavior.

When an insured has submitted multiple claims, it can indicate a higher risk to the insurer. As a result, the insurer is justified in implementing a premium surcharge to align the cost of coverage with the increased risk presented by that insured's history. This mechanism allows insurers to manage their risk effectively and ensure that the premiums charged are reflective of the likelihood of future losses.

Other conditions, such as having filed one claim in the last year, a history of late payments, or the mere expiration of a policy, do not directly correlate with the appropriateness of a premium surcharge based on claims history. Thus, the correct answer appropriately identifies a specific and quantifiable condition under which an insurer has the right to implement a surcharge based on the insured's claims pattern.