American military personnel returning from Iraq have been shocked to find that their insurers are raising their rates. Because many of the men and women who served in the Middle East had allowed their policies to lapse during their tours of duty, they are being rated as higher risks or are not able to secure coverage at all.
In a preemptive action, North Dakota's insurance commissioner drafted a bulletin acknowledging that although considering whether applicants have had continuous coverage usually is appropriate, insurers should be cognizant of the special circumstances facing returning veterans. “In this instance, however, these underwriting requirements are inappropriate and should be waived,” Poolman said in his bulletin. “These servicemen and women, who have risked their lives on behalf of and in defense of our country, should not be penalized for their service.”
Other states also have taken action. Colorado Gov. Bill Owens authorized an emergency regulation to ban the practice of raising military personnel's rates, saying that it was contrary to public policy. Insurance regulators in Washington, Missouri, and Iowa have contacted auto insurers about the issue, while some states, such as Virginia, already had laws in place offering similar protections to members of the armed forces.
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