The troubles continue for Trip Assured of Tennessee. The travel “protection” company has been banned from selling their products in 6 states, prompting Metavante Corp., who processes credit cards for the company, to suspend service.
I have followed this story from the beginning. There has been controversy regarding customer complaints, license issues, and even allegations of favoritism between Tennessee administration and Trip Assured owners.
Much of this stems from Trip Assured’s claim that they do not sell insurance, and therefore do not need an insurance license. Trip Assured sells protection plans for travelers. They collect payment for their product (a premium), and agree to pay for covered circumstances (claims). Sounds like insurance to me.
Trip Assured has been clever to design a site and brochures that imply insurance benefits without using insurance terms. It takes a moment to realize it while reading through their copy.
Why does all this matter?
If Trip Assured uses this loophole to sell “travel protection” without insurance licensing, they are not subject to State or Federal regulations. This might explain the number of consumer complaints, since there is no organization to regulate them.
It is important to purchase travel insurance from licensed, regulated, reputable organizations. You can have the best intentions in buying insurance, but buying from the wrong company can be very costly.
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