Several days ago I wrote about an “Unlicensed Company Selling Travel Insurance” in Texas and that the Texas State Insurance Department has issued a cease and desist order which prohibits them from selling in Texas. Well that company is back in the news again. Yesterday there were two articles that appeared which mentioned them; Local Company Loses Travel Insurance Lawsuit and Associations could taint Clement’s mayoral run.
The first article talks about a law suit that was filed against Trip Assured and the tour operator that sold their “policy” to a client. The tour operator was held liable for the failure of Trip Assured to pay the claim. The article also mentions that a North Carolina voluntary cease and desist agreement where they have agreed not to sell their coverages to residents of North Carolina.
The second article refers to them in an article about a local politician and the fact that “About 40 complaints have been filed with Tennessee’s Department of Commerce and Insurance that the company didn’t pay up”.
There are a couple of morals to this story:
- if you’re buying travel insurance you should follow some simple rules to insure you’re dealing with a reputible insurance agent;
- if you’re selling travel insurance you should follow the same simple rules to make sure you’re entrusting your clients’s to a reputabile company;
- if it sounds to good to be true – it usually isn’t. Low premium is only attractive if you don’t have a claim. It becomes very expensive if it won’t deliver when you need it.