In which scenario would XYZ Insurance NOT be allowed to increase Kate's policy premium immediately?

The scenario where XYZ Insurance would not be allowed to increase Kate's policy premium immediately is when expanding coverage for all policies automatically. Typically, insurers can implement changes to policy terms, including coverage expansions, without immediately raising premiums if these changes are part of a blanket adjustment made within the company that affects all policyholders equally. This kind of policy modification may be intended to improve or standardize coverage, reflecting a long-term commitment to enhancing value for customers rather than an individual action affecting just one policyholder.

On the other hand, adding coverage at Kate's request, including comprehensive coverage, could lead to an immediate premium adjustment because it represents an additional risk and increased coverage limit specifically tailored to her policy. Similarly, adding her husband to the policy also introduces new risk factors, which often necessitate a rerate of the premium based on the combined risk profile. Updating her address could potentially impact her premium rates as well, especially if the new location affects the risk associated with insuring Kate; for example, moving to an area with higher theft or disaster risk may lead to increased premiums directly relating to that specific change.