I don't know if you are familiar with USAA. It was originally the United States Army Automobile Association. It is now both an insurance and banking operation that is headquartered in San Antonio. They serve primarily the military and military veterans. My father was a career Naval officer and 40 year member of USAA. His membership qualified me as a member. I've been a member of USAA for nearly 13 years. I have nearly $50,000 in various bank and investment accounts with them. I have two credit cards with them, I have a mortgage with them. I have a car loan. I have previously paid off a mortgage to them, and numerous car loans. (I have very good credit, I'm no risk to them). Anyways, you have be member to be insured by them, etc.That's a pretty low blow, especially for a company that services veterans and their families. More than a few vets later have scrapes with the law, the Washington Post reported recently. Once they've paid their debt to society, though, it's counterproductive to shun them from routine, productive commerce.
Last week, I logged on to my accounts and decided to update my profile and add my wife. Just added her as a family member (spouse). This caused USAA to contact me (electronically) about updating my auto policies (I have two cars insured with them). I replied that my wife didn't currently reside with me and that she didn't even have a driver's license so they I couldn't add her to my auto policies if I wanted to. USAA then replied that they needed to know why she didn't have a driver's license (was it suspended, revoked, etc.) This kind of irked me, but I went ahead and replied that, although it was none of their business, she was, in fact, currently incarcerated.
I received the following message from USAA this afternoon:
Dear Mr. [Name deleted],
We appreciate your honesty in the matter. USAA has made a business decision not to offer or continue any property and casualty products for individuals with criminal activity, a felony conviction, or previous incarceration. We are of the opinion that this is demonstrative of behavior and judgment characteristics that present an increased and unacceptable risk of loss insured under our policies.
We will review your Automobile and Homeowner's policies as they come up for renewal.
I called USAA to inquire exactly what "We will review our Automobile and Homeowner's policies as they come up for renewal." meant. I was that it meant that USAA would not renew my policies. Even though my wife did not live with me, or that I had asked them for any coverage for her, because she was now a "member of my household," they now longer wanted my business. Mind you now, they have a lien on one car, and hold my mortgage. They'll finance me, but won't insure the very property they've financed.
Needless to say, I was livid. ...
Here is a case of not only punishing someone for their crime they've already served their time for, now they are punishing me for falling in love with her. How is anyone who has ever been in prison, Texas or anywhere else, supposed to succeed in this world with policies like this confronting them?
I understand that a company has the right to set their own policies and procedures. But these policies just perpetuate failure for parolees. ...
Basically I think this policy sucks. For me and for my wife and anyone else to have something like this happen to them.
I try to pretty much stay away from the national healthcare debate but I agree with Barack Obama on one thing - you really can't trust an insurance company to do the right thing.