Insurers Offer Special Benefits to Military Personnel

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Property/casualty insurers are doing their part to support military personnel serving in Iraq by waiving requirements to complete
educational classes for insurance producers or agents while they are on active duty and temporarily delaying premium payments for policyholders participating in Operation Iraqi Freedom.

The National Association of Insurance Commissioners (NAIC) recently
adopted a resolution that suggested regulators suspend any continuing education requirements for insurance producers or agents required by the state while the individual is on active military duty. The resolution also encourages companies to look at flexible ways to help policyholders on active duty in Iraq, including changing coverages or waiving premium payments.

Some examples of situations that could warrant special treatment include: if the policyholder owns a car and is the only driver on his or her parent’s policy; or if a military person is an unmarried and is the single owner/driver of the vehicle. In these particular cases companies are offering to waive premium payments until the military personnel return home. Educational requirements would not need to be completed by producers and agents until their return home.

The National Association of Independent Insurers (NAII) said many of its member companies are implementing the suggestions in the NAIC’s resolution.

State insurance regulators in Arizona, Nevada, New York, North Carolina, North Dakota and South Dakota have already sent varying memos to companies regarding the NAIC’s resolution, some with additional suggestions for flexible alternatives for premium payments in addition to the waiver for producers and agent requirements. The Arizona Department of Insurance gave the public an opportunity to comment on a drafted version of its notice.

NAII suggested some clarifying language that appears in the final notice. NAII said it is expected that other state insurance commissioners may follow suit by issuing their own bulletins.

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