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 insurance@ct.gov or call 860-297-3900.