Undisclosed Top-Ups

Fall 2003 CSANews Issue 48  |  Posted date : Apr 25, 2007.Back to list

Most insurance companies, including Medipac, have a fee to Top-Up other insurance plans which can range from $20 to $50. Some snowbirds attempt to save this fee by not telling their insurance company that they have a second plan. For instance, a teacher may have a plan for 60 days and wish to leave on October 1st. To save the fee, they will tell their insurance company that they are, instead, planning on leaving on December 1st and buy a reduced number of days of coverage.

If you read any policy carefully, you will find that coverage begins on the day you leave (unless you have applied for the Top-Up coverage). Many companies enforce that clause very strictly and you can find yourself without any insurance for the latter part of your trip. In the teacher's case, there would be NO coverage during the last 60 days of their trip and, the later in your trip, the more likely a claim. An even more punitive interpretation by the insurance company, and it happens, would be to rescind your policy for misstatement; in this case you would have NO coverage for any part of your trip. You must be very honest with your insurance company as a small little fib can end up costing hundreds and hundreds of thousands of dollars - US.