California Becomes Sixth State to Ban Trip Assured

October 9, 2006

California Becomes Sixth State to Ban Trip Assured
Oct. 9, 2006 – California has joined Florida, Michigan, North Carolina, Tennessee and Texas in ordering Trip Assured to stop selling trip cancellation insurance. Trip Assured has been selling contracts in the state since May 2003; however, California issued the cease and desist order because the company is not licensed to sell insurance in California and because its cancellation contracts are not underwritten by an insurance company.

Trip Assured also is the focus of numerous complaints, primarily by senior citizens and their families, over its refusal to pay claims, according to an announcement by the California Dept. of Insurance.

California ordered respondents to show cause why the state should not fine them at the rate of $5,000 for each day of unlicensed selling or an amount equal to five times the amount respondents have collected on their contracts with California residents, "whichever is greater." Respondents have seven days to seek a hearing.

According to Travel Trade, California insurance commissioner John Garamendi stated, "This company’s whole reason for being appears to be to defraud and intimidate senior citizens. We will not tolerate this kind of activity."

For more information, visit http://www.insurance.ca.gov/.