We would surmise that Grand Circle is self-insuring the Part 'A' benefits. Our surmise is based on a comparison of the Grand Circle to the Caravan policies. They are almost identical in format and coverages, except that the Caravan policy is totally underwritted the the National Fire Insurance Company( no relation to the U.S Fire Insurance Company which underwrites the Medical portion of the Grand Circle policy ). We checked the web sites of both fire insurance companies and we discovered that the company that underwrites the Caravan policy is totally a subsidiary of Chartis, which became Travel Guard, which itself is an AIG company. The Grand Circle policy iondicates or alludes to the fact that the Part 'A' benefits are not insurance benefits( except in NY, where the Law requires that they be. consequently, Grand Circle can self-insure without having to create a risk payment pool.
The travel cancellation benefits are claimed far less in comparison to claims requested the medical benefits. IOW, a person is far more likely to have a claim for medical reasons than say, for trip delay, baggage delay, or trip cancellation for covered reasons, etc. The Grand Circle 'cancel for any reason' waiver stipulates that a voucher be provided as compensation, so anyone using this waiver will actually have no money returned. Hence, it isw likely that Grand Circle collects premiums for coverages which it is far less likely to pay a claim for, creating individual profits. Not calling them insurance benefits, precludes them from establishing a risk payment pool, which is essentially putting money away to pay potential claims. The US. Fire Insurance company does maintain such a pool, since it is indemnifyong the medical coverages.
It is interesting to note, that the Caravan policy, which is totaly underwritten the the insurance company appears, in our very general comparison, to be less expensive than the Grand Circle policy, which appears to be underwritten both by the insurance company and Grand circle. Of course, these are surmises, based on a comparison of policies each marketed to the travel industry.