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

RIA moves: RWA Wealth Partners strengthens leadership as $8B Procyon widens Northeast footprint
RIA moves: RWA Wealth Partners strengthens leadership as $8B Procyon widens Northeast footprint

The Dynasty Financial partner firm's latest deal in Connecticut adds roughly $600 million in client assets.

Cetera names Richard Vogel to lead Cetera Advisors community
Cetera names Richard Vogel to lead Cetera Advisors community

The giant broker dealer and RIA overseeing roughly $800 billion in AUM and AUA has appointed a Merrill and BofA alum to support advisor growth.

Robinhood in talks with regulators over tokenized US equities
Robinhood in talks with regulators over tokenized US equities

Firm's CEO is confident SEC can approve without legislation.

Five-person Raymond James team jumps to Janney in Maryland
Five-person Raymond James team jumps to Janney in Maryland

The group led by a 37-year industry veteran brings $470 million in assets to the Philadelphia-based broker dealer.

$20B Merit looks to next phase as Constellation takes minority stake
$20B Merit looks to next phase as Constellation takes minority stake

The Atlanta, Georgia-based national wealth firm revealed its new PE partner as prior backers Wealth Partners Capital Group and HGGC's Aspire Holdings exited their investments.

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.