Texas Orders Unlicensed Company to Stop Selling Travel Insurance

The Texas Department of Insurance (TDI) has issued an emergency cease and desist order against Trip Assured Inc., which has been selling travel insurance in Texas without a license.

Trip Assured, based in Crossville, Tenn., has engaged in the business of insurance by soliciting, marketing, selling, administering, executing, and issuing travel insurance policies to Texas residents, according to TDI.

But the department says the company holds no license, certificate, or authorization to practice the business of insurance in Texas. Because the company is unlicensed, there has been no regulatory oversight to ensure lawful policy forms, fair rates, and financial solvency.

Policies written by Trip Assured claimed to provide coverage for trip cancellation/interruption, trip cost default protection, lost or stolen baggage, trip delay, flight insurance, evacuation, and airline penalty protection. Since these coverages were not underwritten by a licensed carrier, Trip Assured retained the entire risk of the policies that were written in violation of Texas insurance law.

Even though it is unlicensed, Trip Assured Inc. is still liable for claims and losses under the terms of the contract, as is any person who directly or indirectly assisted in the procurement of the contract.

Consumers who have any problems with Trip Assured are advised to call TDI’s Consumer Help Line toll-free at 1-800-252-3439 to file a complaint. A complaint may also be filed online from TDI’s website, www.tdi.state.tx.us.

Consumers are encouraged to always check to make sure they are working with a licensed carrier in any insurance transaction. TDI’s website includes company and agent “look up” pages that can be checked to verify that insurance companies, agencies and agents are licensed. Consumers may also call TDI’s Consumer Help Line to verify licensure over the phone.

Source: Texas Department of Insurance