On Traveler’s Insurance and Insurance Fraud
August 2nd, 2006 by Jeb Foster
The Texas Department of Insurance recently ordered an unlicensed travel insurance company to stop writing policies, the Insurance Journal reported yesterday.
The faux insurer, Trip Assured, has been writing polices that cover trip cancellation and delay; evacuation; flight insurance; lost or stolen baggage; and airline penalty protection.
“Because the company is unlicensed,” the Insurance Journal writes, “there has been no regulatory oversight to ensure lawful policy forms, fair rates, and financial solvency.” The article didn’t mention whether there had been any complaints filed against the company.
This story brings up two very blog-worthy subjects - traveler’s insurance and insurance fraud.
As discussed in a previous post, traveler’s insurance can be a worthwhile purchase, but it doesn’t make sense in all cases. For starters, your health and homeowner’s policies may negate the need for this coverage. (Although your health plan may or may not cover international medical care, most homeowner’s policies cover your belongings wherever they are in the world.)
As far as trip cancellation and delay, this is where traveler’s insurance might come in handy. If you’re planning a big-ticket excursion to a volatile part of the world, then you’d do well to cover yourself in the event of an earthquake, coup d’etat or other plan-changing event.
Flight insurance, however, is unnecessary in all cases. As Megan pointed out, the chances of going down in a plane slim to none. (Unless you’re a rock star.)
The second subject, insurance fraud, is something that consumers should be vigilant about. The best way to avoid victimization is to verify the insurer’s license with your state department of insurance before signing up for any type of policy.
For more information on insurance fraud, check out this article from InsureMe’s Insurance Resource Center.
Also, if you think you purchased a policy from a bogus carrier, you can report it online at the National Association of Insurance Commissioners’ Web site.
November 25th, 2006 at 5:15 pm
Don’t be so fast to fall for alleged lower prices. After an automobile accident in which I was a passenger and suffered serious back injuries Progressive Insurance Company and its agent stalled and intentionally delayed taking action, which has resulted in deprivation of medical treatment and financial losses to me. Even though Progressive and its agent were aware that no assessment of liability and no traffic ticket were issued to Progressives OWN insured Policy Holder and the driver of the car in which I was a passenger, Progressive Adjustor threatened to assess full liability for the accident to their OWN Policy Holder without completion of a formal investigation and contrary to the facts laid out by the local law enforcement authorities. The low price ads do not tell you that Progressive will turn on its own PolicyHolders with no justification, and no basis in truth or equity. Today some eleven months after the accident I continue to “plead” to Mr. Glenn M. Renwick, President and CEO of Progressive Corporation for payment of my medical bills while Progressive arrogantly brags about its wonderful art collection and how much the big shots at Corporate love, love, love their expensive artwork. In my situation Progressive Insurance Company has arrogantly refused to respond to my complaints. Progressive and its Adjustor have placed themselves in a position inconsistent with their OWN policy and contract provisions and contrary to their fiduciary responsibilities to their OWN Insured. Progressive has breached its implied obligation of good faith and fair dealing with me. Low Insurance rates are relevant only if Progressive honors its Insurance Policys, because if you pay a low insurance rate and are subjected to bad faith dealing and are deprived of payment for your medical bills when you are seriously injured as is my situation then you need to think seriously about those so-called lower rates. Take a look at Texas Department of Insurance complaints against Progressive Insurance and you’ll see how those complaints were handled by the so-called lower car insurance rates of Progressive. OPEN cc. To Mr. Glenn M. Renwick, President and CEO The Progressive Corporation. Not everyone has the luxury of enjoying expensive art collections, no doubt paid for by Progressive Policy Holders, there are people such as myself who are suffering from serious disabilitating injuries while your Company refuses to honor its policy provisions, pay for medical treatment, expenses and property damages.
Posted by: Linda Restrepo at Nov 1, 2006 4:27:16 PMOctober 17, 2006