AwardGuard coverage clarification
Nov 5, 2002 | 1:56 pm
#1
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AwardGuard coverage clarification
I have been looking into protecting my USAir miles, given their current financial situation. After researching past threads and e-mailing AwardGuard's Customer Service, I seem to have found a discrepency regarding the extent of their coverage. Since others may be basing decisions on info gleaned through FT, I wanted to provide an update/clarification.
The issue is the level of coverage for accounts with a large number of points, and how many tickets can be purchased under AG's coverage. The FAQ is vague, discussing a $7,500 limit and "per year" but not really answering the question directly.
In thread 05223 - "AwardGuard?" - this question was asked:
The answer came back:
In the same topic, Randy posted:
Perhaps the rules have changed, perhaps the wording is mis-leading, or perhaps I just read it wrong, but to me it certainly implies that there is a $7500 per year redemption limit, but any miles remaining are still in the bank for the next year, when the $7500 annual limit starts again. This continues until your miles are consumed. This limit is on the rate of redumption, not the total value.
However, I posed this question to Customer Service (twice, a few months apart) and got this answer:
To me, that means that even if I bank my million+ miles in USAir, as soon as I redeem 2 F tickets to Europe, at a price of $3,750 each - I am done. Not done for the year, done forever - the remaining million miles left in the bank have no value.
This means the answer given to the first question above is dead wrong - the answer is the exact opposite. Randy's aswer also seems very inconsistent with this.
I am assuming this is all due to rule/coverage changes based on the higher probability of failure. I just wanted to make everyone aware so we are making decisions on proper data.
[This message has been edited by CPRich (edited 11-05-2002).]
The issue is the level of coverage for accounts with a large number of points, and how many tickets can be purchased under AG's coverage. The FAQ is vague, discussing a $7,500 limit and "per year" but not really answering the question directly.
In thread 05223 - "AwardGuard?" - this question was asked:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">I asked about the $7500 when I called to sign up. The limit is $7500 per year of redemptions.
For example, if I have all my 2 million miles in airline X, and airline X goes under in 2002, can I redeem tickets worth $7500 each year I continue my membership until my 2 million miles are exhausted, OR am I limited to a total of $7500 corresponding to the single year 2002 in which the airline X went under ?</font>
For example, if I have all my 2 million miles in airline X, and airline X goes under in 2002, can I redeem tickets worth $7500 each year I continue my membership until my 2 million miles are exhausted, OR am I limited to a total of $7500 corresponding to the single year 2002 in which the airline X went under ?</font>
The answer came back:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
The first one. The miles would be good for years and year, subject to $7500 value per year for redeemed miles.</font>
The first one. The miles would be good for years and year, subject to $7500 value per year for redeemed miles.</font>
In the same topic, Randy posted:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Randy Petersen:
QUESTION: Is there a cap to either the number of accounts or number of miles?
ANSWER: No cap on the number of programs covered per membership to the extent of those listed in our materials (it doesn't matter if you belong to 2 or 12 programs) and we don't have an actual cap to the number of miles we can protect for you (some members have millions and with the Midway program, while their award structure was not mileage-based, some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard). The restriction is based on payout per year. For instance, new members can't have claims equal to more than $7.500 in a given year PER program. The reality is that most people may redeem 2-4 rewards a year and most don't exceed that cost. The cost being the claim to supply substitution of awards via a purchased airline ticket.
</font>
QUESTION: Is there a cap to either the number of accounts or number of miles?
ANSWER: No cap on the number of programs covered per membership to the extent of those listed in our materials (it doesn't matter if you belong to 2 or 12 programs) and we don't have an actual cap to the number of miles we can protect for you (some members have millions and with the Midway program, while their award structure was not mileage-based, some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard). The restriction is based on payout per year. For instance, new members can't have claims equal to more than $7.500 in a given year PER program. The reality is that most people may redeem 2-4 rewards a year and most don't exceed that cost. The cost being the claim to supply substitution of awards via a purchased airline ticket.
</font>
However, I posed this question to Customer Service (twice, a few months apart) and got this answer:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
You are given one $7500 aggregate award liability for a program that ceases operation with no other program taking over the airline/program/miles. However, if more than one airline goes out of business during the same membership year you are given $7500 for both programs. The $7500 is given only once and is not replenished. You must keep your membership active in order to make claims against your banked miles. We would purchase tickets up to the amount of $7500 or until your miles were used up whichever comes first.
</font>
You are given one $7500 aggregate award liability for a program that ceases operation with no other program taking over the airline/program/miles. However, if more than one airline goes out of business during the same membership year you are given $7500 for both programs. The $7500 is given only once and is not replenished. You must keep your membership active in order to make claims against your banked miles. We would purchase tickets up to the amount of $7500 or until your miles were used up whichever comes first.
</font>
This means the answer given to the first question above is dead wrong - the answer is the exact opposite. Randy's aswer also seems very inconsistent with this.
I am assuming this is all due to rule/coverage changes based on the higher probability of failure. I just wanted to make everyone aware so we are making decisions on proper data.
[This message has been edited by CPRich (edited 11-05-2002).]
Nov 5, 2002 | 4:38 pm
#3
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Tino:
A more important question is:
Why are you sitting home with a million+ US Air miles? Get out and go see the world!!!</font>
A more important question is:
Why are you sitting home with a million+ US Air miles? Get out and go see the world!!!</font>
I've burned 450,000 this year - Europe, Disney with the kids, Carribean - I've still got plenty.
I fly a lot.
Nov 5, 2002 | 5:38 pm
#4
Join Date: May 2001
Location: Colorado Springs
Posts: 66
CPRich.... In regards to your questions on AwardGuard....as you point out in
your post, there appears to be a lot of information floating around on
different threads regarding AwardGuard. Some posts are from FlyerTalkers and
some of them are from our employees. Rather then who said what when, I think
that the best way to clarify the coverage is to revisit the FAQ's from the
AwardGuard site, which I have listed for you below:
[This message has been edited by Janet at WebFlyer (edited 11-05-2002).]
your post, there appears to be a lot of information floating around on
different threads regarding AwardGuard. Some posts are from FlyerTalkers and
some of them are from our employees. Rather then who said what when, I think
that the best way to clarify the coverage is to revisit the FAQ's from the
AwardGuard site, which I have listed for you below:
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
Q: Are there any limits to my AwardGuard protection?
A: AwardGuard maintains a one-time $7,500 award liability if one or moreprograms go completely out of business in a given membership year. Thismeans that when a covered program goes completely out of business, we canpurchase up to $7,500 of award replacements. We must receive all documents,statements, awards and tickets within the first 30 days of a covered programgoing out of business. When you wish to use those miles and/or points for atrip, we will purchase the required accommodations in accordance with therules, regulations and blackout dates the covered program had in effect atthe time it went out of business, however, we may impose additional fees.This $7,500 is a fixed-limit liability and cannot be exceeded, regardless ofthe number of years that an AwardGuard account is maintained or the numberof programs that go out of business in a given membership year. The coveragewill expire when you have used up all your miles and/or points, or we havespent $7,500 in replacement value, whichever comes first. You must keep yourmembership active in order to make claims against your banked miles and/orpoints.
------------------------------------------------------------------------
Q: Will AwardGuard protect miles and points in all my programs?
A: Yes, one AwardGuard membership will protect all the programs that wecover. If one or more covered programs go out of business during yourmembership year, you may claim up to $7,500 in award replacements. Forexample, Program "A" goes out of business and your total amount of awardreplacements comes to $6,000. Then, in the same membership year, Program "B"goes out of business. You would still be able to claim up to $1,500 in awardreplacements for Program "B." If, on the other hand, Program "A" goes out ofbusiness during one membership year and Program "B" goes out of business inanother membership year, you can claim up to $7,500 in award replacementsfor both programs for a total of $15,000 in coverage. You must keep yourmembership active in order to make claims against your banked miles and/orpoints.
</font>
Q: Are there any limits to my AwardGuard protection?
A: AwardGuard maintains a one-time $7,500 award liability if one or moreprograms go completely out of business in a given membership year. Thismeans that when a covered program goes completely out of business, we canpurchase up to $7,500 of award replacements. We must receive all documents,statements, awards and tickets within the first 30 days of a covered programgoing out of business. When you wish to use those miles and/or points for atrip, we will purchase the required accommodations in accordance with therules, regulations and blackout dates the covered program had in effect atthe time it went out of business, however, we may impose additional fees.This $7,500 is a fixed-limit liability and cannot be exceeded, regardless ofthe number of years that an AwardGuard account is maintained or the numberof programs that go out of business in a given membership year. The coveragewill expire when you have used up all your miles and/or points, or we havespent $7,500 in replacement value, whichever comes first. You must keep yourmembership active in order to make claims against your banked miles and/orpoints.
------------------------------------------------------------------------
Q: Will AwardGuard protect miles and points in all my programs?
A: Yes, one AwardGuard membership will protect all the programs that wecover. If one or more covered programs go out of business during yourmembership year, you may claim up to $7,500 in award replacements. Forexample, Program "A" goes out of business and your total amount of awardreplacements comes to $6,000. Then, in the same membership year, Program "B"goes out of business. You would still be able to claim up to $1,500 in awardreplacements for Program "B." If, on the other hand, Program "A" goes out ofbusiness during one membership year and Program "B" goes out of business inanother membership year, you can claim up to $7,500 in award replacementsfor both programs for a total of $15,000 in coverage. You must keep yourmembership active in order to make claims against your banked miles and/orpoints.
</font>
Nov 5, 2002 | 6:06 pm
#5
Join Date: Jun 2000
Location: Spring Lake,NJ
Posts: 1,219
If this is indeed the case....why would Randy himself post something like this?
Originally posted by Randy Petersen:
QUESTION: Is there a cap to either the number of accounts or number of miles?
ANSWER: No cap on the number of programs covered per membership to the extent of those listed in our materials (it doesn't matter if you belong to 2 or 12 programs) and we don't have an actual cap to the number of miles we can protect for you (some members have millions and with the Midway program, while their award structure was not mileage-based, some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard). The restriction is based on payout per year. For instance, new members can't have claims equal to more than $7.500 in a given year PER program. The reality is that most people may redeem 2-4 rewards a year and most don't exceed that cost. The cost being the claim to supply substitution of awards via a purchased airline ticket.
--------------------------------------------------------------------------------
This implies that the $7500 is PER YEAR and that people from the Midway program have continued to enjoy benefits for some time...like 2-4 rewards a year as Randy states.
If the $7500 is a one time aggregate...then I would have to say that AwardGuard is almost worthless!
Originally posted by Randy Petersen:
QUESTION: Is there a cap to either the number of accounts or number of miles?
ANSWER: No cap on the number of programs covered per membership to the extent of those listed in our materials (it doesn't matter if you belong to 2 or 12 programs) and we don't have an actual cap to the number of miles we can protect for you (some members have millions and with the Midway program, while their award structure was not mileage-based, some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard). The restriction is based on payout per year. For instance, new members can't have claims equal to more than $7.500 in a given year PER program. The reality is that most people may redeem 2-4 rewards a year and most don't exceed that cost. The cost being the claim to supply substitution of awards via a purchased airline ticket.
--------------------------------------------------------------------------------
This implies that the $7500 is PER YEAR and that people from the Midway program have continued to enjoy benefits for some time...like 2-4 rewards a year as Randy states.
If the $7500 is a one time aggregate...then I would have to say that AwardGuard is almost worthless!
Nov 5, 2002 | 6:50 pm
#6
Join Date: Jan 2001
Posts: 3,122
If Janet's citation is correct, this is definitely different than what I thought I was purchasing to protect a considerable amount of miles in their covered programs. If there is a total limit of $7500 in coverage (not per year) then I am certainly not going to renew. Some clarification regarding the conflicting citations would be appreciated. Thanks.
Nov 5, 2002 | 7:20 pm
#7
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Janet at WebFlyer:
CPRich.... In regards to your questions on AwardGuard....as you point out in
your post, there appears to be a lot of information floating around on
different threads regarding AwardGuard. Some posts are from FlyerTalkers and
some of them are from our employees. Rather then who said what when, I think
that the best way to clarify the coverage is to revisit the FAQ's from the
AwardGuard site, which I have listed for you below:
[This message has been edited by Janet at WebFlyer (edited 11-05-2002).]</font>
CPRich.... In regards to your questions on AwardGuard....as you point out in
your post, there appears to be a lot of information floating around on
different threads regarding AwardGuard. Some posts are from FlyerTalkers and
some of them are from our employees. Rather then who said what when, I think
that the best way to clarify the coverage is to revisit the FAQ's from the
AwardGuard site, which I have listed for you below:
[This message has been edited by Janet at WebFlyer (edited 11-05-2002).]</font>
Thanks for the confirmation. I either looked at the wrong FAQ or they have been updated in the last few days (I can't even access the site right now to confirm - too many FT'ers checking in?). I recall the ones I read to be a bit murkey, but these spell it out very clearly. The also are in agreement with both responses I've received from Customer Service, so my direct communication with the program has been very clear and consistent.
It is not consistent with what I inferred from Randy's post, and is certainly not consistent with the semi-/mis-information that others have posted here, which is what drove me to publish the note in the first place.
Hopefully many folks will read this so that we are all making decisions with the proper data. This will avoid any ugly situations in the future, should the worst case happen.
Thanks again for the clarification.
Nov 5, 2002 | 7:49 pm
#8
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This is very disconcerting to say the least. I believe the FAQs quoted here are different than the ones that existed when I signed up last year and renewed in September of this year. Those FAQs clearly stated it was $7500 per year, not a one-time aggregate limit. I am out of town right now, but will be checking the copy I printed off the web last year to see if the FAQs are truly different. Input from Randy on this issue would be appreciated by all.
Nov 6, 2002 | 8:06 am
#9
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Posts: 6,416
While I am very interested in the response, my posting here is not to argue with the terms and conditions. Rather, it seems to me that if there is a lifetime limit of $7,500/program, the coverage is no longer of sufficient value, at least to me, to allow for renewal. And I have been a member (on automatic renewal) for many years.
Nov 6, 2002 | 8:39 am
#10
Guest
Posts: n/a
Just a quick point of clarification. We have recently updated the AwardGuard FAQs in an attempt to reduce confusion, but the terms of the program remain unchanged.
If you have any questions/concerns, we encourage you to call AwardGuard customer service at (800) 487-8893 or send an email to [email protected].
If you have any questions/concerns, we encourage you to call AwardGuard customer service at (800) 487-8893 or send an email to [email protected].
Nov 6, 2002 | 2:22 pm
#11
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Posts: 17,819
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Mikel at WebFlyer:
Just a quick point of clarification. We have recently updated the AwardGuard FAQs in an attempt to reduce confusion, but the terms of the program remain unchanged.
</font>
Just a quick point of clarification. We have recently updated the AwardGuard FAQs in an attempt to reduce confusion, but the terms of the program remain unchanged.
</font>
I am completely baffled by the FAQ.
Kathy
Nov 6, 2002 | 5:59 pm
#13
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by MileKing:
...I believe the FAQs quoted here are different than the ones that existed when I signed up last year and renewed in September of this year....</font>
...I believe the FAQs quoted here are different than the ones that existed when I signed up last year and renewed in September of this year....</font>
Nov 6, 2002 | 6:31 pm
#14
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<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by Middle_Seat:
If you know the URL, you can sometimes read previous versions of a web page on the Wayback Machine at http://www.archive.org/</font>
If you know the URL, you can sometimes read previous versions of a web page on the Wayback Machine at http://www.archive.org/</font>
http://web.archive.org/web/200109261...legeflyer.com/
==>Customer Support ==> faq's
These are the FAQ's as I remember reading them just 2 weeks ago. I still can't access the current site to read the current version, to verify what was posted above.
<font face="Verdana, Arial, Helvetica, sans-serif" size="2">
Q: Are there any limits to my AwardGuard protection?
A: AwardGuard has an annual award liability of $7,500 for each membership year. This means that when an airline goes out of business, we can purchase up to $7,500 of replacement tickets. We must receive all documents, statements, awards, and tickets within the first 30 days of an airline going out of business. We will replace any tickets you have with applicable travel on another airline and the rest of your miles will go into your AwardGuard account. When you wish to use those miles for a trip, we will purchase the required ticket in accordance with the rules, regulations and blackout dates the airline had in effect at the time they went out of business. However, we may impose additional ticketing requirements. The replacement of tickets will stop when you have used up all your miles, or we have spent $7,500 in replacement tickets.
Q: Will AwardGuard protect miles and points in all my programs?
A: Yes, one AwardGuard membership will protect all the programs that we cover. If more than one program goes out of business during your membership year, you may claim up to $7,500 in award replacements. For example: The first program goes out of business and your total amount of award replacements comes to $6,000. If another program goes out of business during the same membership year, you will be able to claim up to another $1,500 in award replacement tickets.
Q: Are there any limits if I belong to both programs?
A: There is a $7,500 aggregate award liability on all memberships (excluding the $500,000 accidental death protection) and on AwardExtender there is also a 200,000-mile annual limit. This means that during any one membership year, we can replace awards for either an AwardGuard or AwardExtender claim up to, but not exceeding, the amount of $7,500. You may not put in more than 200,000 miles in claims for AwardExtender during one membership year.
The $7,500 is reinstated for AwardExtender each membership year but cannot be carried over into the next membership year to gain a higher award liability. Once you have claimed $7,500 during one membership year, we will be unable to fulfill any more claims that year. If you renew your AwardExtender membership, you will have another $7,500 in award liability for any future claims, but that amount may not be applied to a claim you have already requested prior to renewing.</font>
Q: Are there any limits to my AwardGuard protection?
A: AwardGuard has an annual award liability of $7,500 for each membership year. This means that when an airline goes out of business, we can purchase up to $7,500 of replacement tickets. We must receive all documents, statements, awards, and tickets within the first 30 days of an airline going out of business. We will replace any tickets you have with applicable travel on another airline and the rest of your miles will go into your AwardGuard account. When you wish to use those miles for a trip, we will purchase the required ticket in accordance with the rules, regulations and blackout dates the airline had in effect at the time they went out of business. However, we may impose additional ticketing requirements. The replacement of tickets will stop when you have used up all your miles, or we have spent $7,500 in replacement tickets.
Q: Will AwardGuard protect miles and points in all my programs?
A: Yes, one AwardGuard membership will protect all the programs that we cover. If more than one program goes out of business during your membership year, you may claim up to $7,500 in award replacements. For example: The first program goes out of business and your total amount of award replacements comes to $6,000. If another program goes out of business during the same membership year, you will be able to claim up to another $1,500 in award replacement tickets.
Q: Are there any limits if I belong to both programs?
A: There is a $7,500 aggregate award liability on all memberships (excluding the $500,000 accidental death protection) and on AwardExtender there is also a 200,000-mile annual limit. This means that during any one membership year, we can replace awards for either an AwardGuard or AwardExtender claim up to, but not exceeding, the amount of $7,500. You may not put in more than 200,000 miles in claims for AwardExtender during one membership year.
The $7,500 is reinstated for AwardExtender each membership year but cannot be carried over into the next membership year to gain a higher award liability. Once you have claimed $7,500 during one membership year, we will be unable to fulfill any more claims that year. If you renew your AwardExtender membership, you will have another $7,500 in award liability for any future claims, but that amount may not be applied to a claim you have already requested prior to renewing.</font>
Bottom line - If a program goes bankrupt, you get $7,500 worth of tickets max, no matter how many miles you have. And you need to pay the annual fee and remain a member until that total amount is used up.
Agreed?
Again, just trying to clarify to make sure everyone is making decisions on proper info.
[This message has been edited by CPRich (edited 11-06-2002).]
Nov 6, 2002 | 6:41 pm
#15
Join Date: Jun 2000
Location: Spring Lake,NJ
Posts: 1,219
This pretty much makes this coverage "useless" for those of us with large volumes of miles....anyone know of any other way to protect these?
This statement by Randy himself seems to imply other than a $7500 one-time limit. Why does he insert words like "900,000 miles" and "10 years"...these are very misleading.
"some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard").
[This message has been edited by IM4Travel (edited 11-06-2002).]
This statement by Randy himself seems to imply other than a $7500 one-time limit. Why does he insert words like "900,000 miles" and "10 years"...these are very misleading.
"some members did have covereage equal to about 900,000 miles, which why some 10 years later they are still enjoying their awards courtesy of AwardGuard").
[This message has been edited by IM4Travel (edited 11-06-2002).]