RICHMOND — Military service may generally require deployment and return to the United States. The State Corporation Commission’s (SCC) Bureau of Insurance and the National Association of Insurance Commissioners (NAIC) encourage servicemembers to review their insurance coverage to make certain that they and their families stay protected no matter where they are.

“Frequent moves and changes in deployment status create a unique situation for members of the armed services when it comes to insurance,” said Virginia Insurance Commissioner Alfred W. Gross. “By staying on top of their insurance options, military personnel can make sure that they have the right coverage for any situation, whether they are in Afghanistan, Iraq, or Virginia.”

Information covering a wide range of insurance topics is available on the Bureau of Insurance (Bureau) and NAIC websites. In addition, the NAIC has tailored a section of its consumer education website – www.InsureUonline.org – to the special circumstances military personnel should take into account when shopping for insurance. The site provides insurance tips and special considerations on the four basic types of insurance: auto, home, health, and life. Comprehensive insurance information specifically for the military can be found at www.insureuonline.org/course_military.htm.

The Bureau and NAIC offer the following insurance tips for members of the armed services:

• Auto Insurance
  • Generally, if you will be deployed for an extended period of time and no one will be driving your vehicle, you may be able to suspend some of your auto insurance coverage to save on premium payments.
  • If you are a holder of a Virginia auto insurance policy and are on military duty outside of Virginia and your auto is stored on a military base’s impound lot, your insurer is required to honor your request to suspend certain types of auto coverage. Contact your agent or insurance company to see if your situation allows your insurer to suspend auto coverage. Ask whether the following types of coverage can be suspended while you are deployed: liability, collision, comprehensive, uninsured/underinsured motorist, and medical payments. Because of Virginia’s financial responsibility laws, contact the Department of Motor Vehicles for information about suspending coverage before you ask your agent or insurance company to suspend your auto coverage.
• Homeowners Insurance
  • Many homeowners’ policies have a “vacancy clause” that may be activated if you are deployed for an extended period of time and the home remains vacant during your deployment. Such policies might not pay certain types of claims if your house is vacant for a specified period of time, such as 30 or 60 consecutive days or more. Ask your insurance company how it defines “vacancy” and whether it will pay claims submitted on a vacant house.
  • Review your policy with your agent before leaving for military duty. Make sure your policy limits are sufficient to cover your home and your personal property at today’s costs. Consider increasing your coverage if you have made additions or improvements to your property.
• Health Insurance
  • Many reservists and National Guard members have health coverage for themselves and their families through an employer-sponsored health plan. Some may wish to continue that coverage, particularly for their dependents, during their active duty period. Talk to your benefits administrator to learn what will happen with your health coverage when called to active duty.
  • Your right to continue health coverage under an employment-based group health plan is covered by federal laws, and for smaller employers, may be covered by state continuation laws. The Consolidated Omnibus Budget Reconciliation Act (COBRA) provides health coverage continuation rights to employees and their families after an event such as reduction in employment hours. The Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) is intended to minimize the disadvantages that occur when a person needs to be absent from civilian employment to serve in the uniformed services. Both COBRA and USERRA generally allow individuals called for active duty to continue coverage for them-selves and their dependents under an employment-based group health plan for up to 24 months.
  • When you are called to active duty for more than 30 consecutive days, you and your dependents should be eligible for military health care coverage. Dependents have medical and dental services provided through uniformed services facilities subject to availability and are eligible for health benefits from civilian sources through the federally-funded TRICARE program, the triple option benefit plan available for military families. Consult your TRICARE benefit information for specific details.
• Life Insurance
  • Anyone who sells life insurance at military installations is required to obtain permission from the Department of Defense. Virginia’s Rules Governing Military Sales Practices also identify a number of special requirements that apply to the sale of life insurance and annuities to members of the United States Armed Forces. When inquiring about insurance, ask to see the permits granted by installation commanders as well as Virginia licenses and appointments with insurance companies to be sure you are dealing with a legitimate agent.
  • Many private insurance policies do not provide coverage for acts of war, and the sale of a life insurance product with such an exclusion by an insurer to an individual known to be a servicemember is prohibited in Virginia. Military personnel are provided some death benefits, and may purchase a limited amount of additional coverage through the Servicemembers' Group Life Insurance (SGLI), a low-cost group life insurance program that includes benefits for death resulting from acts of war. Be sure you understand the benefits paid by the policy in the event the policyholder’s death occurs in a war zone or is the result of an act of war. When purchasing life insurance coverage, check with your agent to make sure it does not duplicate life insurance coverage you have or for which you may be eligible as a servicemember.
  • Servicemembers can contact their Payroll, Finance, or personnel Flight Office for details on insurance premium payment and refund issues. Servicemembers and their beneficiaries should contact the Office of Servicemembers’ Group Life Insurance (OSGLI) for pending claims.

Get smart about your insurance needs. For more information about auto, home, life, and health insurance options — as well as tips for choosing the coverage that is right for military personnel — visit the Bureau of Insurance website at www.scc.virginia.gov/boi. Consumers should also visit www.InsureUonline.org or take the military insurance quiz at www.insureuonline.org/course_military.htm.

###