Refunds were not given when tour company cancelled trips.

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Jun 24, 2019
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It was the cruise line that offered CFAR, not the insurance company?

Why don't you post your policy for us to read, removing any personal information like your full name and address. None of this is making any sense regarding the insurance. As SoCal stated, if you had a legit policy in place and the cruise line cancels the policy without your approval then contact the state commissioner.

@Neil Maley when you and your wife book cruises for clients and they opt to buy a policy directly from the cruise line, who controls the policy? The passenger or the cruise line? Do cruise lines offer CFAR?
The cruise line can establish a refund and deposit policy which allows for CFAR, for example. As the cruise line is not a licensed insurance company, it cannot describe that refund/deposit policy as insurance. Many cruise lines today have adopted very generous cancellations policies to encourage bookings.

An insurer can re-insure the risk of excessive claims with one of the re-insurers in that business. That contract might even specify that re-insurance kicks in when losses exceed a benchmark, without regard to the cause of the losses.
 
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jsn55

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Dec 26, 2014
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insurance is governed in each state by the state insurance commissioners. The cruise lines are not insurance companies. The cruise lines do not even own a captive insurer. Insurance is offered by licensed insurance companies who owe a fiduciary duty to the named insured, whether or not the named insured paid for the policy. All of the terms of the insurance cotnract must be in that contract. The cruise line has never been a named insured. The cruise line has no insurable interest in the typical situation. And I would think a cruise line which "controls" the insurance policies it has arranged for its customers is asking for trouble.

The first step for OP is to determine if the insurance contract provides that the cruise line has the right to cancel insurance. I find it hard to believe that such a clause is in there. There may be provisions which provide that if the cruise cancells the cruise, x happens. But that has to be in the insurance contract. Now if the cruise line cancels the cruise and provides a full refund, and assists the customer by also arranging a refund of insurance, then the customer is presumably fine with that. But if the cruise line cancels the cruise, and refuses to refund the fare, and then cancels the insurance policy, thereby defeating the customer's right to make a claim or ask for cancellation, the cruise line may be out of line.

If there is no such provision in the insurance contract (not the cruise contract) then our OP has the option of complaing to the insurance commissioner in his state. And, of course, the cost of complaining is low compared to the possible payoff.
This is EXACTLY what I was just thinking. You buy an insurance policy "through" the travel provider. That's just a convenience to you as the traveller. Your money goes to the insurance company, a policy is issued to you from the insurance company. You OWN that policy ... unless there is a provision in the policy that states the insurance is cancelled if the trip is cancelled ... and I agree with you, I doubt that it does state that. Most states' insurance commissioners are very pro-insured, so I would read that policy carefully, then file a complaint if appropriate.
 
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