"Financial default" refers to a situation where a person, organization, or government is unable to fulfill their financial obligations or repay their debts on time. It means they have failed to make the required payments, which can lead to serious consequences such as legal actions, loss of assets, and damaged credit.
Full definition
Some policies cover
financial default of your travel supplier or pay for lodging and meals during delays that begin after your trip starts.
For financial default coverage, travelers need to make their initial insurance payment within 14 days of booking the first parts of their trip.
It is also recommended that you buy within an advantage period (usually 14 — 21 days from the time you make your first deposit) to receive full medical and
financial default benefits.
It includes both a pre-existing medical condition waiver and a waiver for supplier
financial default in the base plan if purchased within 15 days of your initial trip deposit.
Covered reasons for trip cancellation and interruption
include financial default of travel supplier, terrorist incidents, labor strikes, jury duty, auto accidents, layoffs, and more.
Companies can't insure themselves
against financial default, so policies purchased through a tour operator or cruise line won't cover you if the company goes out of business or files for bankruptcy.
To benefit
from financial default coverage and pre-existing medical condition waivers, travelers should get their travel insurance as soon as they start planning and paying for the trip.
With today's uncertain economic times, many travelers are becoming increasingly concerned with cancellation coverage in the event a travel supplier goes
into financial default or bankruptcy.
Many times, this insurance option will only serve as secondary medical coverage and will not cover expenses for
financial default on the cruise line's behalf.
The Platinum Plan also covers for pre-existing medical conditions,
carrier financial default, even trip cancellation due to job loss and other covered work reasons.
He noted that the probability of
financial default reflected in market prices was excessive, particularly in the materials and energy sectors.
Check your policy to make
sure financial default coverage is provided There are many different travel insurance companies, and each company has several products.
Read all
about financial default / bankruptcy coverage with your travel insurance plan, and see which companies and plans offer this type of coverage.
Covered reasons generally include the following: sudden medical emergencies,
unforeseen financial default of an airline, cruise line or tour operator, severe weather, terrorist incidents, and jury duty.
When the travel insurance is purchased from the travel supplier,
then financial default coverage does not apply to that travel company.
There are many reasons to purchase your travel insurance plan as early as possible, and it is specifically important
with financial default and bankruptcy coverage.
It does not offer some of the perks other trip insurance agencies cover, such as reimbursement for lost mileage or trip cancellation due to
financial default of the carrier or tour agency.
Travel insurance companies will define the specific travel suppliers that they will cover
for financial default.
(2)
Financial Default occurs more than 14 days following an Insured's effective date for the Trip Cancellation or Trip Interruption Benefits.
Some companies cover
financial default as long as you purchase travel insurance within 24 hours of FINAL trip deposit.
Select Plus Quality travel insurance with adequate limits and early purchase options at no extra cost This is quality travel insurance that covers all the essential travel risks and provides coverage for pre-existing medical conditions and
supplier financial default in the base plan if purchased early (within 15 days of initial trip deposit).
Travel insurance can cover a wide range of things, including extra expenses due to trip interruption or cancellation; a delayed flight or missed connection; baggage delay or loss of baggage; certain medical expenses;
financial default by a travel provider; the loss of a job; and even loss due to a war or an act of terrorism.
Financial default often requires meeting additional conditions such as purchasing within an advantage period from the date of first deposit (usually 14 — 21 days) and most have a 14 day waiting period from the time insurance is purchased.
It is important to note that
financial default benefits are available only if the airline, cruise line or tour operator was not in bankruptcy at the time of purchase of the travel insurance policy.
Supplier default refers to
financial default as it is defined in our insurance policies and certificates: «A complete cessation of operations because of financial circumstances, with or without filing for bankruptcy protection.»
When you purchase the Platinum Plan within 15 days of making the first payment for your trip, you gain the benefit of trip cancellation and interruption coverage if your tour company, airline or cruise line goes
into financial default.
Jill had purchased travel insurance protection
with financial default coverage and was able to get reimbursement for her pre-paid travel costs.
Covered reasons for trip cancellation and interruption include inclement weather, mechanical breakdowns, strikes, travel
supplier financial default, natural disasters, terrorist acts, and more.
If a Travel Select customer's trip is canceled or interrupted due to natural disasters, inclement weather, labor strikes, mechanical problems, terrorism or
financial default on the part of the travel supplier, Travelex will reimburse 100 percent of losses up to $ 25,000.
Under their Platinum plan, travelers are insured against even the most unusual circumstances, including
carrier financial default, employment layoff, and more.
Banging on their shuttered windows and locked doors won't get your money back, but some travel insurance plans
include financial default in their coverage.
Canadians households are stretched thin already, and heavy debt burdens are putting more Canadians at risk of
financial default in the event of interest rates increases, unemployment or other economic hardships.
Other time - sensitive benefits include Accidental Death & Dismemberment, and coverage for
financial default of a covered travel supplier.
Many of Travel Guard's retail insurance programs include
financial default coverage if the program is purchased within 15 days of making the initial trip deposit.
Doubling or tripling taxes certainly won't win any popularity contests; neither will
financial default and plunging the global economy into chaos.
The researchers analyzed 21 years of data involving more than 700 public companies and found that in the three years leading up to
financial default the average loss in company stock value was nearly $ 30 million.
The student plan specifically covers natural disaster, refunds,
financial default, theft, and health to name a few.