Frequently Asked Adoption Questions

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Adoption Cancellation Insurance presented by Art Adams of MBO at 1-800-833-7337 Frequently Asked Questions
Quite often in the adoption process, substantial amounts can be spent to assure that the birth mother receives high quality prenatal and birth delivery care. If, however, the birth parents terminate the adoption process before the child is turned over to new adopting parents, there may be little or no legal recourse for recovering the expenses. MBO can protect against such financial loss through insurance for adoptions, underwritten by Kemper Insurance Company.

What are the basic policy provisions of insurance for adoptions?
The policy covers independent adoptions arranged privately between the adopting parents and the birth parents, through attorneys and agencies prequalified by the underwriters. The policy does not cover arrangements for surrogate parenthood.

What expenses are reimbursed under the policy?
If the birth parents terminate the adoption process before the adoption becomes final, the policy will indemnify the adopting parents for expenses paid to the birth mother or paid on her behalf. The reimbursable expenses must have been incurred while the policy was in effect but before the birth parents announced their intention to keep the child. Covered expenses incurred by the birth mother include medical care, living expenses necessary for the birth process, counseling, and travel to arrange the adoption. Legal expenses are not covered other than those incurred to advise the birth mother of her rights. (But coverage can be purchased through an optional endorsement.)

How long is the policy term?
Since adopting parents may apply for the policy at various stages in the adoption process, the policy term may vary. Generally, a policy is in effect from the moment it is underwritten until the earliest of the following dates:

The date the adoption is completed
The date either birth parent withdraws consent for the adoption
The expiration of the policy 12 months after it is written

The insurance applies only to expenses incurred by the adopting parents while the policy is in effect. We recommend that prospective adoptive parents apply for the insurance as soon as practicable after retaining an attorney.

What are the most common policy exclusions?
Besides the standard exclusions such as for loss arising from war or insolvency, the policy does not cover:

Expenses which state law forbids the adopting parents to pay
Losses resulting from the adopting parents' decision not to complete the adoption or from their failure to meet the state's criteria for adopting parents
Expenses incurred to contest a withdrawal of the birth parents' adoption consent

The policy also does not cover any costs or expenses incurred if the birth mother suffers a miscarriage or if the child is stillborn. (But coverage for these two risks can be purchased through an optional endorsement.)

How many claims can be made under one policy?
The policy protects against one event. If the event occurs and a claim is paid, coverage ends. Another policy would have to be purchased to cover another adoption attempt. However, a policyholder may decide to forego making a claim against the policy, and may then have the policy to apply to a future adoption.

How is a claim paid?
Kemper Insurance Company will pay claims under a policy within 30 days after its Regional Claims office has received proof of loss and has reached an agreement with the insured on the amount of the claim. Any disagreements regarding amounts claimed are settled by independent appraisers chosen by both Kemper and the insured.

Are there any coinsurance or deductible provisions to be satisfied ?
There is no coinsurance clause and $1,000 deductible.

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Minimizing Adoption Risks

Please call or email to Mindy Charbonneau with your questions or for an application:MBO Insurance Brokers
855 Oak Grove Ave
Menlo Park, CA
(800) 833-7337
Email: fahti@ibm.net

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