What is the minimum amount of travel insurance that must be offered to consumers?

The minimum amount of travel insurance that must be offered to consumers is established to ensure adequate coverage in various scenarios that travelers may face. The correct answer is $5 million. This amount is designed to provide sufficient protection against unforeseen events such as medical emergencies, cancellations, and other travel-related issues.

When traveling internationally, the risks can be significant, and a comprehensive insurance policy is crucial for safeguarding travelers' financial well-being. Offering a minimum of $5 million ensures that consumers have a substantial safety net that can cover high medical costs abroad, potential evacuation needs, or other emergencies that may arise during their journeys, which could exceed lower amounts.

By setting this high standard for minimum coverage, the regulation helps promote consumer confidence in purchasing travel insurance and encourages travelers to be prepared for any contingencies during their trips. Lower amounts may not fully cover the potential costs associated with serious incidents, which is why $5 million is deemed a necessary baseline for travel insurance.