Is it legal for insurance premiums to exceed insurance face amount of insurance policy?
Yes, it is legal and can occur in some rare situations when the iten being insured is of a low monetary value. As an exapmle, If you wanted to insure a 30 teddy bear. The actual premium may only be a few dollars but most Insurance policies also have an associated policy production fee with property coverage policies that can be anywhere from 30 dollars to 100 dollars as well as what are referred to as minimum premium. Your state also wil generally have premium tax and fees that must be attached to your policy. Resultingly one could wind up paying anywhere from 50 to a couple of hundred dollars to insure that 30 dollar item.
