American military personnel returning from Iraq have beenshocked to find that their insurers are raising their rates.Because many of the men and women who served in the Middle East hadallowed their policies to lapse during their tours of duty, theyare being rated as higher risks or are not able to secure coverageat all.

In a preemptive action, North Dakota's insurance commissionerdrafted a bulletin acknowledging that although considering whetherapplicants have had continuous coverage usually is appropriate,insurers should be cognizant of the special circumstances facingreturning veterans. “In this instance, however, these underwritingrequirements are inappropriate and should be waived,” Poolman saidin his bulletin. “These servicemen and women, who have risked theirlives on behalf of and in defense of our country, should not bepenalized for their service.”

Other states also have taken action. Colorado Gov. Bill Owensauthorized an emergency regulation to ban the practice of raisingmilitary personnel's rates, saying that it was contrary to publicpolicy. Insurance regulators in Washington, Missouri, and Iowa havecontacted auto insurers about the issue, while some states, such asVirginia, already had laws in place offering similar protections tomembers of the armed forces.