What term is used to describe an insurance company's act of raising premiums after guaranteeing no increases for five years?

The term used to describe an insurance company's act of raising premiums after guaranteeing no increases for five years is considered fraud. Fraud in the insurance context typically involves intentional deception to secure unfair or unlawful gain, which can include representing an untrue narrative about premium stability. In this case, the insurance company made a promise of no premium hikes for a designated period but then contradicted that promise by increasing premiums. Such a practice can mislead policyholders and undermine their trust in the insurance provider, making it a legal and ethical violation.

Misrepresentation refers to a false statement made that can lead to a misunderstanding, but it does not necessarily encompass the broader legal implications of fraud. Unfair practice often refers to tactics that can mislead or deceive consumers but does not specifically capture the intent of fraudulent behavior. A rate increase is simply the act of raising premiums without the connotation of deceptive intent that fraud entails. Thus, fraud most directly addresses the behavior described in the scenario.