I understand your point, but I'd rather not pay the money with no knowledge and no real guarantee that my miles would be covered. To pay money to someone for which you may or may not get coverage is like paying for magic beans that may or may not grow a beanstalk. Perhaps I am wrong - there's a lot of smart business people on this site - is popping out a couple of hundred dollars for something with no known guarantee a smart business decision?

Which raises yet another interesting point - this uncertainty would not exist if Mr. Peterson would answer these questions, and if he will not, why do you think it wise to buy into such a program? Just on the HOPE that it will work? Would anyone advise their college-age kids to enter into financial transactions without looking first?? I'm simply saying that, hey maybe the reason no one else offers this kind of insurance is because those companies know that they could not afford to pay off if a major airline went down, otherwise they'd been all over this faster than crap through a goose, and maybe no reinsurer would touch something like this. Just because there is no competitor doesn't mean you cannot choose otherwise, to not insure the miles.

Mr. Peterson being an honest businessman should have no complaints about the questions being raised and should be able to answer at least two - what specific agency regulates the insurance offered by AirGuard and how can a potential purchaser verify AirGuard's financial viability in the event of the failure of a major carrier? If these answers are not forthcoming, then indeed you would be right - hope would be all you have left that your miles are protected.