The National Association of Insurance Commissioners (NAIC) today expanded its award-winning Insure U consumer education program with information specifically for domestic partners.
A domestic partnership describes a same or opposite-sex couple in a committed relationship -- similar to a marriage -- but without an official marriage license. The 2000 U.S. Census estimates that there are more than 770,000 domestic partnerships in the United States.
"Domestic partners need to be aware of the insurance issues that could impact their lives," said Ohio Insurance Director Mary Jo Hudson. "Understanding your insurance needs and getting the right coverage is an important step in protecting yourself, your loved ones and your belongings."
The Insure U curriculum, available at www.insureUonline.org , provides insurance tips and special considerations on the basic types of insurance: auto, home, health, and life. The new information for domestic partners builds on four life situations already available on the site: young singles, young families, established families and seniors.
The NAIC commissioned a nationwide survey in March 2008 among domestic partners to gauge their knowledge of insurance issues. Research was also compiled on consumers in the three other life situations for which new Insure U curriculum has been created: single parents, the military, and grandparents raising grandchildren.
"The information from these surveys helped us to understand what domestic partners do and don't know about their insurance needs," said Illinois Insurance Director Michael McRaith. "Based on this knowledge, we were able to develop relevant tips to help domestic partners better understand their insurance needs."
Following is a summary of the key research findings related to domestic partners, with interpretive commentary provided by the NAIC:
- 49 percent of domestic partners said they have no formal documentation providing evidence of their relationship.
- For insurance purposes, such documentation is important in situations where policies specifically provide benefits to members of a family or household.
- Only 47 percent of domestic partners said they had plans that allowed coverage of their partner.
- That means more than half the people in these committed relationships had to obtain coverage from another source, possibly paying more money than if they were treated in the same way as a married couple.
- 49 percent of domestic partners do not have health care proxies for their partners.
- The absence of this document could create difficulties in the event that one partner becomes seriously ill or injured and cannot make medical decisions on his or her own.
- 71 percent of domestic partners with auto insurance shared one or more
vehicles with their partner. Of those, in only two-thirds of these situations were both partners listed on the policy.
- To reduce the potential for disputed claims, it's advisable that both partners be listed on these policies.
- 73 percent of domestic partners said they had homeowners or renter's insurance. Of those, only 59 percent indicated that both partners were listed on the policy.
- To reduce the potential for disputed claims, it's advisable that both partners be listed on these policies.
"As state insurance regulators, we are committed to educating domestic partners and all consumers on insurance issues," said Michigan Insurance Commissioner Ken Ross. "Insure U is at the foundation of this public
duty -- reaching millions of consumers and helping them make more informed insurance decisions."
The Insure U curriculum also provides information about how to avoid being scammed by fake insurance companies selling fraudulent insurance policies. Disaster preparedness and long-term care insurance tips are also included. After reviewing the curriculum, consumers can take an online quiz and download an Insure U diploma.
"With such a large variety of insurance products available in the market, the choices can be overwhelming," said Florida Insurance Commissioner Kevin McCarty. "Insure U helps every consumer better understand their insurance needs."
For more information, call the NAIC's toll-free hotline -- 866-470-NAIC (6242) -- to find out how to contact your local insurance department; visit www.naic.org/state_web_map.htm to link to your local insurance department's Web site; or visit www.insureUonline.org for additional tips specifically geared toward a variety of life situations.
