Travel Insurance Flashcards
Accidental death and dismemberment
A type of policy that covers accidental loss of life or limb while traveling.
Baggage Delay
Coverage that reimburses for the purchase of essential items, such as toiletries and items needed until baggage is recovered if baggage is delayed more than a certain number of hours.
Baggage Loss
Coverage that reimburses for expenses incurred due to theft, damage, or the mysterious disappearance of personal property.
Canadian Life Insurance Association
A not-for-profit, membership-based organization representing 99% of Canada’s life and health insurance companies; its Guidelines describe practices for providing consumers with information reasonably sufficient to make an informed decision about the insurance being made available.
Cancel for Any Reason (CFAR) Insurance
In the U.S. it is an optional benefit offering insured parties the opportunity to cancel their trip for any reason not listed in the travel policy; in Canada, CFAR has been built into its comprehensive plans and is not a rider or stand-alone offer as long as all purchasing parameters are met.
Collision loss/damage
Coverage that reimburses the cost of damage to, or theft of, a rental car.
Emergency Medical Transportation
Coverage that pays for transportation ordered by a doctor to the nearest adequate medical facility (a facility nearest to the insured’s location that can handle the condition). Pays up to the policy limit for a special medical escort if recommended in writing by a doctor. Medical repatriation helps cover costs for returning home once the insured is able.
Medical/dental expense
The reasonable and necessary cost of treatment for injury or sickness—provided by a medical doctor, dentist, or professional nurse on an emergency or urgent basis—that is actually incurred by the insured (e.g., if the insured needs a prescription when he or she gets the flu).
National Counsel of Insurance Legislators MOdel Act (NCOIL)
A model statute created by state legislators whose main area of public policy concern is insurance legislation; it does address travel insurance but has not been adopted by all U.S. states.
Pre-existing Condition
An injury, illness of the clients (or that of a family member or traveling companion) that existed during a defined time frame before the date the client bought the insurance and paid a deposit for the trip.
Primary Coverage
Coverage that pays 100 percent of cost to the covered benefit amount. (That is, the travel insurance company pays first. There is no need to file with another carrier such as a medical or homeowner’s insurance company, airlines, and so on.) No deductible or copayment is required.
Travel Insurance
Insurance coverage for personal risks incident to planned travel, including but not limited to: (1) interruption or cancellation of trip or event; (2) loss of baggage or personal effects: (3) damages to accommodations or rental vehicles: or (4) sickness, accident, disability, or death occurring during travel. Travel insurance does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six month or longer, including, for example, those working overseas as an expatriate or military personnel being deployed.
Travel Protection Plan
A plan that provides one or more of the following: travel insurance, travel assistance services, and cancellation fee waivers.
Travel Waiver
A form of reimbursement in the event of cancellation pre-departure generally offered by suppliers–such as cruise lines and tour operators–rather than by insurers.
Trip Cancellation / Trip Interruption
Coverage that protects the insured’s financial investment if his or her trip is canceled or interrupted for covered, unforeseen reasons such as a medical condition, bad weather, unannounced labor disputes, termination of employment (only some companies), or financial default.
