Insurers can't refuse coverage due to travel

NAIC has revised its rules to keep life insurers from refusing coverage based on customers’ future travel.
MAR 31, 2008
By  Bloomberg
The National Association of Insurance Commissioners today revised its Unfair Trade Practices Model Act to keep life insurers from refusing coverage based on customers’ future travel. Specifically, the NAIC’s Life Insurance and Annuities Committee unanimously agreed that future travel cannot be the basis for a coverage decision unless actuarial principles or experience show that travel to a particular place at a specific time would create a risk of loss that’s greater compared to the risk for people who don’t travel to that place at that time. Carriers may refuse or limit coverage if the client is traveling someplace where the U.S. Centers for Disease Control and Prevention has issued an alert or a warning, or in a location where there is an ongoing armed conflict involving a foreign army. The proposed revisions will now move up to the NAIC’s executive committee and plenary for final approval.

Latest News

NASAA moves to let state RIAs use client testimonials, aligning with SEC rule
NASAA moves to let state RIAs use client testimonials, aligning with SEC rule

A new proposal could end the ban on promoting client reviews in states like California and Connecticut, giving state-registered advisors a level playing field with their SEC-registered peers.

Could 401(k) plan participants gain from guided personalization?
Could 401(k) plan participants gain from guided personalization?

Morningstar research data show improved retirement trajectories for self-directors and allocators placed in managed accounts.

UBS sees a net loss of 111 financial advisors in the Americas during the second quarter
UBS sees a net loss of 111 financial advisors in the Americas during the second quarter

Some in the industry say that more UBS financial advisors this year will be heading for the exits.

JPMorgan reopens fight with fintechs, crypto over fees for customer data
JPMorgan reopens fight with fintechs, crypto over fees for customer data

The Wall Street giant has blasted data middlemen as digital freeloaders, but tech firms and consumer advocates are pushing back.

The average retiree is facing $173K in health care costs, Fidelity says
The average retiree is facing $173K in health care costs, Fidelity says

Research reveals a 4% year-on-year increase in expenses that one in five Americans, including one-quarter of Gen Xers, say they have not planned for.

SPONSORED How advisors can build for high-net-worth complexity

Orion's Tom Wilson on delivering coordinated, high-touch service in a world where returns alone no longer set you apart.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.