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Returning Military should review Insurance options Ohio Department of Insurance Urges Service
Personnel to maintain right coverage "With frequent moves and changes in deployment status, members of the armed services face a unique situation when it comes to insurance," explained Director Hudson. "By staying on top of their insurance options, military personnel can make sure that they have the right coverage for any situation, whether they are in Kabul, Afghanistan; Kirkuk, Iraq; or Columbus, Ohio." Director Hudson offered the following sample of tips for those in the armed services to help with selecting their insurance coverage: Auto Insurance If you will be deployed for an extended period of time you may want to suspend your auto insurance coverage. Check with your insurance agent or insurance company to determine if this is a feasible option for you and the premium savings you will realize. If you do suspend your auto insurance coverage while you are deployed, be sure to notify your insurance agent or insurance company as soon as possible after your return. A delay in obtaining auto insurance upon your return may result in non-compliance with Ohio's financial responsibility law. Many insurance companies will not consider lack of auto insurance coverage during deployment as a lapse in coverage if you obtain coverage soon after returning home. However, a delay in securing auto insurance upon your return may result in you having to pay more for your auto insurance coverage since the insurance company could consider this delay as a lapse in coverage. Homeowners/Renters Insurance Many policies have a "vacancy clause" that may be activated if you are deployed for an extended period of time and your family has moved to a new location. Such policies might not pay claims if your house is vacant for 60 days or more. Consult with your insurance agent or company to learn how "vacancy" is defined and whether or not the claims will be paid if the home is vacant during your deployment. If your current policy does not currently or cannot be endorsed to provide coverage while you are deployed, you may have to find alternative coverage. Some insurance companies do offer coverage for vacant properties. Typically, the premium is greater when the insurance policy provides coverage during vacancy. However, when you return from a deployment, vacancy endorsement or policies can be removed or replaced, so that a cost savings can be realized. To avoid future disputes, review your policy with your insurance agent or company before you leave for military duty. Also, make sure your policy limits are sufficient to cover your home and your personal property at today's costs. Consider increasing your coverage limits if you have made additions or improvements to your property. The military generally will not pay to repair or replace personal property that is damaged or lost in military housing or in a war zone. Homeowners and renters insurance policies typically cover personal property that you take with you while traveling, but most policies exclude coverage for damage caused directly or indirectly from war. Talk to your insurance agent or company about whether personal items that you take with you during your deployment will be covered if they are lost, stolen, or damaged. Be sure to discuss with the agent or company if they are any limitations of coverage or exclusions from coverage for any particular types of personal property. Also remember that covered losses will be subject to a deductible that you would be responsible for before any payment of loss from the insurance company. Health Insurance Many reservists and National Guard members have health coverage for themselves and their families through an employer-sponsored health plan. Some may wish to continue that coverage, particularly for their dependents, during their active duty period. Talk with your benefits administrator to learn what will happen with your health coverage when called to active duty. If you are on active duty for more than 30 days, you and your dependents should be covered by military health care. Dependents have medical and dental services provided through uniformed services facilities subject to availability and are eligible for health benefits from civilian sources through the federally funded TRICARE program, the triple option benefit plan available for military families, formerly known as CHAMPUS (Civilian Health and Medical Program of the Uniformed Services). Your right to continue health coverage under an employment-based group health plan is covered by federal laws. The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides health coverage continuation rights to employees and their families after an event such as reduction in employment hours. The Uniformed Services Employ-ment and Reemployment Rights Act of 1994 (USERRA) is intended to minimize the disadvantages that occur when a person needs to be absent from civilian employment to serve in the uniformed services. Both COBRA and USERRA generally allow individuals called for active duty to continue coverage for themselves and their dependents under an employment-based group health plan. (eighteen months under COBRA and twenty-four months under USERRA). Life Insurance Anyone who sells life insurance at military installations is required to obtain permission from the Department of Defense to be an authorized solicitor. When dealing with an agent, ask to see permits and licenses to be sure you are dealing with a legitimate agent. Ohio does not permit life insurance policies to be sold to active duty members of the Armed Services that contain a provision denying benefits if the death occurred as a result of war. Other states may not have similar laws. Frequently, private insurance carriers do not offer coverage for Acts of War. Military personnel are provided some death benefits, but may purchase a limited amount of additional coverage through the Servicemembers' Group Life Insurance (SGLI), a low-cost group life insurance program that includes benefits for death resulting from Acts of War. Be sure you understand the benefits paid by the policy if you were to die in a war zone or were to be killed through an act of war. If you purchase an individual military-focused policy, check with your agent to make sure it does not duplicate coverage for your family that could be obtained elsewhere. Service members can contact their Flight, Payroll or Finance Office for further details on premium payment and refund issues. Service members and their beneficiaries should contact the Office of Servicemembers' Group Life Insurance (OSGLI) for pending claims. The Depart-ment of Labor (DOL) has information on its website about COBRA for military personnel and their dependents. Ohio insurance consumers with questions and concerns about their insurance can call the Department's consumer hotline at 1-800-686-1526. More information, including access to the Department's online military insurance toolkit, can also be obtained at www.insurance.ohio.gov. |
