Carriers of Unfair Practice Targeting Deployed Military
The Connecticut Insurance Department wants to remind insurers and active-duty military that any surcharge for policy lapses made by active duty military personnel is an unfair practice.
Please be aware that in Connecticut no active military personnel upon their return to the states should face an extra charge to reinstate the policy lapse. This surcharge is commonly referred to as the “Patriot Penalty.”
Any member of the Armed Forces who was a policyholder in good standing at the time of deployment and can show proof that the policy lapse occurred during active service, are expected to be treated as if the coverage was continuous and the surcharge waived.
The Insurance Department issued guidance in 2004 that prohibits insurers from issuing this type of a surcharge.
Read the CT Insurance Department Position on Underwriting Standards for Members of the Armed Services Returning from Active Duty.
The Consumer Federation of America recently released a list of states where this practice continues to be a concern.
While Connecticut residents do not appear to be affected, anyone with questions should contact the Consumer Affairs Department by email at firstname.lastname@example.org or call 860-297-3900.
- Email us at email@example.com
- Ask a question or file a complaint online
- Call the Consumer Helpline at 800-203-3447 or 860-297-3900.
- Sign up for e-alerts to get the latest news, warnings and rate changes that may affect your premium
- Download consumer FAQs on health, homeowner and auto coverage
- Use the Department’s Speakers Bureau for public events.
- Visit our Web site and follow the Department on Facebook, Twitter or YouTube