Minimizing Adoption Risks
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Adoption Cancellation Insurance presented by Art Adams of MBO at 1-800-833-7337
Minimizing Adoption Risks Even with the surest of feelings and intentions, it is inevitable that some birthmothers (or birthfathers ) will, either with remorse or larceny in their hearts, change their minds and renege on someone's dreams.
I have been insuring adoptions since 1990 and have issued over 1,500 policies and paid over 200 claims. The following are my observations and experiences of the last six years. They are generalities based on many claims; the best advice for your situation will always come from your own Adoption Professional.
The risk of a birthmother or birthfather changing their mind is real, it does happen, but for those using a specialized attorney or agency, in less than 1 out of 5 adoptions. And we have paid claims for adopting parents who were then successful on their second or even third try.
I. To Minimize the Odds of a Change of Mind
- Work with a Specialist Attorney or Agency. Look for a member of the American Academy of Adoption Attorneys; the Academy of California Adoption Lawyers; or another state association. Ask other couples for personal references and success stories.
- Look for the right chemistry. As in choosing any partner, some very good professionals may not have the right fit for you.
- What we look for in qualifying an Attorney Agency for our insurance program:
- An Adoption Specialist
- At least three years in the business
- At least 100 successful adoptions
- Associations
- Malpractice coverage
- Percentage of their practice devoted to adoption
- Number of people in firm for number adoptions per year
- What are the attitudes of the state where the adoption will be filed. Duration of opportunity for birthparents to change their minds. Attitude toward out of state adopting parent(s).
- What is your birthmother's family's attitude toward the adoption?
- What about the birthfather? How does your state treat birthfather's rights?
- Is there any Native American heritage? As little as 1/64th can require tribal approval.
II. To Minimize Your Financial Exposure From A Loss- Compare Attorney's or Agency's fees and what services you get from them. Ask about what documentation of expenditures you will get from them and what you should record for yourself.
- What will be your projected costs: Does your birthmother have health insurance? How far along in her term is she? Where does she live? Will she or you be traveling?
- How will you pay for her expenses? Pay as you go, or Attorney/Agency escrow account? What is the hospital's prepay and refund policy?
- Insure the risk; premiums are about 10% of the amount of coverage.
- If your Attorney or Agency finds your birthmother, what expenses have already been incurred for her?
- If you are insured by group health insurance through your work, your maternity benefits may apply to your birthmother (Omnibus Budget Reconciliation Act of 1993).
III. Probabilities and Types of Loss Expenses- As a statistical average, for every 100 policies we issue, we will pay claims because:
- 14 Birthmothers change their minds before they go to the hospital to deliver
- 3 Birthmothers change their minds while they are in the hospital
- 2 Birthmother change their minds after they have given custody
Out of 1,250 polices, we have only had 3 claims because a birthfather reclaimed. - Split of Expenses-- Living; Medical; Travel; Other
- 64% Living Expenses
- 10% Medical Costs
- 5% Travel Expenses
- 21% Legal
Advice from the adjuster who actually handles these claims:
Choose your counselor, whether attorney or agency, and then listen to their advice.
" Don't continually force the issue of commitment with your birthmother. Let her have her space when she needs it. This is a time of emotional extremes for her, even without the decision to place her baby for adoption."
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Frequently Asked Questions
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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