Archive for April, 2010

Natural Disaster Trip Insurance

Friday, April 23rd, 2010

Recently, the worst disruption of European commerce since World War II was caused by an unexpected natural disaster, a volcano eruption in Iceland. Volcano Eyjafjjoell erupted for the second time in less than a month after being dormant since 1821. This time, the ash and smoke caused an international crisis that effected air travel in many parts of Europe. The International Air Transport Association reported that the ash made air travel unsafe and led to the cancellation of 100,000 flights and an estimated $1.7 billion loss to the airline industry.

Travelers found themselves unexpectedly stranded as days passed and air travel was grounded due to the natural disaster. Other travelers spent thousands of dollars on non-refundable tickets, accommodations and excursions for their pre-planned trips and at the final moment were unable to board a plane. When they requested a refund, some found that they were out of luck! The European Union offered some financial assistance for already-stranded travelers traveling in and out of the EU where if original flights were canceled they had a right to either a refund or to be re-routed.

This has many travelers considering what options they have to avoid this problem in the future. Natural disaster trip insurance is an important consideration when planning to travel abroad, especially if your expenses are non-refundable. Whether volcano, earthquake, tsunami, or other natural disaster strike, it is an important consideration. That is why trip cancellation has become extremely popular. For many, the RoundTrip Choice has become a popular option as you can add the cancel for any reason option which would allow you to cancel and receive reimbursement for your trip costs.

If you have any questions about the benefits, feel free to contact a licensed agent to provide additional assistance.

 

US State Department Issues Travel Warning in Mexico and Consulate is Piedras Negras is Closed

Monday, April 12th, 2010

On April 12, 2010, the United States Department extended a travel warning in Mexico until May 12 due to the violence that has erupted particularly in the Northern region including in Tijuana, Nogales, Ciudad Juarez, Nuevo Laredo, Monterrey, and Matamoros.

This extension was in part due to the bomb that was targeted at the United State Consulate building in Nuevo Laredo on Friday night. Though no one was injured, the Consulate General and Consular Agency in Piedras Negras have been closed indefinitely starting Monday, April 12, 2010, until they have sufficient security in place.

This follows the recent violence linked to drug trafficking targeted at US consulate workers in Ciudad Juarez where three people were killed. According to the New York Times, “Drug violence is raging across Mexico, and almost 20,000 people have died in the fight among cartels and with Mexican security forces since President Felipe Calderón began his crackdown on drug gangs in 2006.”

For the latest security information, the US State Department offers information on Travel Warnings and Alerts to monitor the security status.

 

Insurance Carrier Ratings

Tuesday, April 6th, 2010

In recent years, market instability has made headlines and created financial uncertainty even among the largest companies. So the question arises, how do you know which plans are more financially stable than others?

Dating back to the early 1900’s, independent rating agencies were established to evaluate the worthiness of financial instruments of railroad companies. Over the years, multiple rating agencies have developed a more extensive rating standard across various industries. Today, the leading rating agencies include Standard and Poor’s and AM Best.

Typically, these rating agencies use an alphabetical standard to identify which companies have extremely strong financial strength:

  • AM Best uses a scale from A++ (Superior) down to F (Liquidation); According to AM Best, a company with a B+ (Good) or higher rating is classified as financially secure, while any lower rating is categorized as vulnerable.
  • Standard and Poor’s uses a scale from AAA (Extremely Strong) down to CC (Extremely Weak); Standard & Poor’s requires that “all health care insurers in the secure range are expected to maintain at least ‘BBB’ level.”

This rating index is especially important as it will help ensure that your plan will have sufficient funds to pay any claims that you may incur. One of the most important functions of this system is that it also allows you can compare other insurance plans based on industry standards from independent agencies.

International Citizens only provides A rated insurance carriers to ensure that you and your family are properly insured. If you have any questions about our plans and their ratings, please feel free to contact our certified agents.