Shop around and don’t be afraid to ask questions

FOR IMMEDIATE RELEASE
June 18, 2009 
Contact: Jason Moon  517-335-1700

LANSING – The Office of Financial and Insurance Regulation (OFIR) today offered tips to Michigan residents with domestic partners to help them better understand their insurance needs. A domestic partnership describes a same-sex or opposite sex couple in a committed relationship—similar to a marriage—but without an official marriage license.

“When buying insurance, domestic partners need to take a few extra precautions,” OFIR Commissioner Ken Ross said. “Asking the right questions before you buy can save you time and money.”

Michigan law does not prevent employers or insurance companies from recognizing domestic partners under insurance contracts or benefit plans. Domestic partners should keep in mind that some insurance providers and employers may require formal proof of your relationship in order to provide insurance benefits. Make sure you can supply this documentation, which may include a domestic partnership affidavit, a copy of a lease, homeowners policy or a joint financial account showing both names.

OFIR’s Tips Regarding Insurance for Domestic Partners:

Auto

• If you and your partner drive one another’s cars, consider listing each other as a secondary driver on your auto insurance policy. Doing so may help protect you and your partner in the event of an accident while driving the other’s car and prevent a claim from being denied.

• If you share a car, ask your insurer to list one of you as the primary driver and the other as the secondary driver on the policy. Disclosing up front eliminates uncertainty in the event you need to file a claim.   

• If you have multiple vehicles, some insurance companies offer a multi-car/multi-driver discount. Check with your auto insurer to see if you are eligible.

Home  

• If you own a home with your domestic partner, make sure both of your names are listed on the deed, mortgage and homeowners policy. Check your policy to make sure that both of your belongings are covered.

• Where one partner owns the home, the other should consider purchasing a separate renter’s insurance policy to protect his/her personal belongings. You may also consider having the existing homeowners policy endorsed to include coverage for the non-homeowner’s belongings. This approach may be less expensive than purchasing a separate renter’s policy.  Talk to your agent about your options.

Health 

• A number of Michigan employers offer domestic partner health benefits. To make sure your partner is eligible for benefits, check your employer’s definition of “family member,” “dependent” or “domestic partnership” in the employee handbook and/or check with your human resources department. Before enrolling, also check directly with the health insurance company to make sure that your partner will be covered.

• If you and your domestic partner have dependent children, they may be eligible for health care coverage as “dependents.” You may need to provide your employer or insurance company with legal documentation as proof of their dependency. 

• If your domestic partnership dissolves, and you are receiving your health benefits from your partner’s employer-sponsored group health plan, you may be entitled to pay to continue your coverage under the federal Consolidated Omnibus Budget Reconciliation Act (COBRA) for up to 18 months upon your termination from the plan.

• Consider creating a health care proxy or health care power of attorney document indicating that you have designated your partner to make medical decisions if you are unable to do so, and to allow for hospital visitation. The document should be prepared by an attorney and kept in a safe place that is easily accessible if you or your partner needs it. You may also want to place it on file with your medical professionals so that the doctor is aware of your needs.

Life  

• Consider purchasing life insurance policies for both you and your partner. Death benefits will assist a surviving partner in paying outstanding bills, offer financial protection, and peace of mind.

• If you and your domestic partner have children, it might not be a good idea to provide a life insurance benefit directly to a minor child; instead make sure the policy names a trustee who will act on behalf of the child. Otherwise the life insurance benefit may not be available to the child until the insurance proceeds work their way through probate court. 

• Michigan laws do not recognize domestic partnerships as legal heirs in the absence of a will. If you do not list your domestic partner as your beneficiary in your will and the policy is paid to your estate, your domestic partner may not be eligible to receive the insurance proceeds.

For more information contact OFIR toll-free 877-999-6442 or visit: www.michigan.gov/ofir.

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