Date: August 13, 2001
For more information contact: Eileen Mallow (608) 266-7843 or eileen.mallow@wisconsin.gov

Madison, WI--Wisconsin residents who are considering travel insurance for an upcoming vacation should be cautious and get enough information about the policy to be sure they have adequate coverage for their needs, according to the Office of the Commissioner of Insurance. Asking specific questions about coverage before any insurance purchase and knowing exactly what is covered in the policy can help avoid future problems, if a claim is necessary.

"Travel insurance coverage for tour cancellations, trip accidents and vacation delays is very specific," said Commissioner Connie O'Connell. "Vacationers should ask to see the actual policy rather than relying on a brief brochure."

Travel insurance usually covers trip cancellations, delays and cancellations due to:

• Unexpected sickness, injury or death of the insured or a family member
• A financial default of a tour operator
• Bad weather or natural disasters that close travel services
• Other circumstances "which could not have been reasonably foreseen"

There is usually a pre-existing condition clause in the policy that does not allow people with an on-going health problem to use that particular illness to make a claim. To avoid pre-existing condition exclusions, many travel insurance policies must be purchased within a certain number of days of the trip.

Insurance coverage for lost or damaged luggage may also be offered with a travel policy. However, items such as cameras, cash, jewelry, medicines and sporting goods are not covered under travel policies. Also, depending on the age of the luggage, the value may have depreciated and the insurance company may offer little or no compensation. It is also a good idea to keep a list of items that are packed in the suitcase in order to remember every item in case a claim must be filed.

In addition, carrier-caused delays or cancellations including airline labor strikes are usually not covered. However, an unexpected strike or act of terrorism may be covered, depending on the policy. Also excluded are health and accident situations such as suicide, risky sports, pregnancy and financial problems that result from bills incurred from the trip or business or contractual obligations that aren't met.

"Everyone purchasing travel insurance should read the list of exclusions carefully," Commissioner O'Connell said. "Ask the travel agent or salesperson to explain anything you do not understand and ask them to provide a document with all the terms and conditions clearly outlined and clarified."

Often companies that market travel insurance are not the actual insurers. The actual insurer, or underwriter, must be licensed and therefore the state in which the policy is purchased has jurisdiction in case of disputes.

For more information on travel insurance, contact the OCI toll-free at 1-800-236-8579, or check the OCI Web site at http://oci.wi.gov/oci_home.htm.