More States Tell Insurers Don't Refuse Iraq Vets
NU Online News Service, June 4, 4:18 p.m. EST?Three more states have joined North Dakota in putting pressure on auto insurers to stop them from refusing renewals or raising rates for returning GIs, an agent trade group said.
The National Association of Professional Insurance Agents said they are supporting the effort to see that no insurance company denies auto coverage to U.S. Armed Forces personnel, or raises their rates, because their coverage lapsed while they were on active duty overseas.
PIA noted that Washington, Missouri and Iowa have now issued statements saying there should be no denials of auto insurance coverage or rate increases for soldiers returning from active duty in Iraq or Afghanistan based upon a lack of continuous coverage.
Len Brevik, PIA chief executive officer and executive vice president said his Washington-based group "applauds insurance officials in Washington and Iowa, along with Missouri Governor Bob Holden, for going to bat for our Armed Services personnel who are serving us so well. We urge all other state officials to follow the lead of their colleagues who are acting quickly in support of our troops."
Mr. Brevik said advisories by all state insurance departments should be issued recommending waivers of all underwriting standards on continuous coverage for returning service personnel and reinstatement of policies as if coverage were continuous.
PCI said the issue was first raised when insurance agents in North Dakota told the state's insurance commissioner, Jim Poolman that some auto insurance companies are denying reinstatement, refusing to write policies, or raising premium rates for members of the Armed Forces who discontinued their auto insurance while deployed, because they could not demonstrate continuous insurance coverage.
Mr. Poolman reacted by issuing a bulletin saying such underwriting requirements "are inappropriate and should be waived" in the case of returning U.S. soldiers. PIA National responded by issuing a May 19 action alert to all its state and regional affiliates, urging them to aggressively press their state insurance regulators to issue similar bulletins.
"This is just the right thing to do," said PIA National Vice President Ray Peretti of Renton, Wash. "As professional insurance agents, we are accustomed to advocating for our customers. In this instance, we are proud to advocate for both our clients and our country."
PIA said Mr. Peretti had worked with the Washington insurance commissioner's office to secure issuance of their bulletin.
Mr. Brevik said PIA's campaign to obtain continuous coverage waivers for returning U.S. soldiers will continue.
PIA is a national trade association that represents member insurance agents and their employees who sell and service all kinds of insurance, but specialize in coverage of automobiles, homes and businesses.
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