Special Protection

Consumers need a better understanding of insurance issues specific to their unique situations.

Special relationships deserve protection, too. That’s the assessment of the National Association of Insurance Commissioners, which has doubts about the insurance protections afforded and being purchased by members of the military, grandparents raising grandchildren, domestic partners and single parents.

Consequently, under the banner of its “Insure U” online consumer education program, the association is offering educational resources covering auto, home, health and life insurance topics geared for those segments.

In preparing the appropriate resources for those select groups on the Insure U Web site, the NAIC discovered some worrisome statistics:

• 38 percent of members of the military said their homeowners policy limited coverage of unoccupied homes. Many homeowners policies do not cover unoccupied homes, a provision that could affect personnel deployed away from home for long periods of time.
• 52 percent of grandparents raising grandchildren said they had no proof — such as legal guardianship papers — to document their role in raising their grandchildren. Such documentation is useful when dealing with public schools, seeking access to government programs and addressing insurance issues, NAIC said.
• 57 percent of grandparents who were raising a teenager of driving age said they did not have their grandchild listed as a secondary driver on their auto insurance policy. Similarly, 35 percent of grandparents said their homeowners policy did not provide coverage of their grandchild’s possessions. Adding grandchildren to auto and homeowners policies would ensure that their belongings and their actions are covered, the association said.
• 49 percent of domestic partners said they had no formal documentation providing evidence of their relationship. Such documentation is important in situations where insurance policies specifically provide benefits to members of a family or household.
• Only 47 percent of domestic partners said they had plans that allowed coverage of their partner. That means more than half had to obtain coverage from another source, possibly paying more money than if they were treated in the same way as a married couple, the association indicated.
• 15 percent of single parents said their children did not have health insurance, indicating that they may not be aware of state and federal programs for children.
• Only 37 percent of single parents said they carried life insurance for the benefit of their child.

Sandy Praeger, Kansas Insurance Commissioner and NAIC president, said the statistics indicate consumers need a better understanding of insurance issues specific to their unique situations. Thus, the insurance industry should focus more resources on the “varied life situations and needs that characterize our diverse nation,” she said.

“Our research identified many misperceptions and misunderstandings about insurance among these consumer groups,” added NAIC Executive Vice President and CEO Catherine J. Weatherford.

Want to help your customers? Refer them to www.insureuonline.org.

Topics Homeowners