OLYMPIA, Wash. -- Washington's insurance commissioner ordered
Travel Guard to stop selling travel insurance in the state because,
it said, Travel Guard has no authority to do so. The Insurance
Company of North America (INA), the underwriter, also was ordered
to cease selling travel coverage in the state.
Washington's insurance commissioner's office said Travel Guard
had sold policies without gaining mandated approval for policies
and rates from as far back as 1997. Last year, Travel Guard sold
120,000 travel insurance policies to Washington residents,
according to the insurance department.
A spokesman said the commissioner's office discovered that
Travel Guard did not have the necessary approvals while
investigating a complaint from a consumer who was unsuccessfully
seeking a refund of her insurance premium.
Travel Guard said it has a contract with INA to file its
products in each state and get them approved. It said it expected
to file immediately for approval of its programs in Washington,
"and we expect a positive outcome."
The spokesman for the insurance commissioner said the department
would expedite the applications.
Meanwhile, commissioner Mike Kreidler said the state's action
"does not relieve either company of the responsibility of
processing and paying claims or otherwise fulfilling the
contractual commitments to anyone who bought this insurance."