Sec. 514.14  Insurance.
(a) Sponsors shall require each exchange visitor to have
insurance in effect which covers the exchange visitor for
sickness or accident during the period of time that an exchange
visitor participates in the sponsor's exchange visitor program.
Minimum coverage shall provide:
(1) Medical benefits of at least $50,000 per accident or illness;
(2) Repatriation of remains in the amount of $7,500;
(3) Expenses associated with the medical evacuation of the
exchange visitor to his or her home country in the amount of
$10,000; and
(4) A deductible not to exceed $500 per accident or illness.
(b) An insurance policy secured to fulfill the requirements of
this section:
(1) May require a waiting period for pre-existing conditions
which is reasonable as determined by current industry standards;
(2) May include provision for co-insurance under the terms of
which the exchange visitor may be required to pay up to 25% of
the covered benefits per accident or illness; and
(3) Shall not unreasonably exclude coverage for perils inherent
to the activities of the exchange program in which the exchange
visitor participates.
(c) Any policy, plan, or contract secured to fill the above
requirements must, at a minimum, be:
(1) Underwritten by an insurance corporation having an A.M. Best
rating of "A-" or above, an Insurance Solvency International,
Ltd. (ISI) rating of "A-i" or above, a Standard & Poor's
Claims-paying Ability rating of "A-" or above, a Weiss Research,
Inc. rating of B+ or above, or such other rating as the Agency
may from time to time specify; or
(2) Backed by the full faith and credit of the government of the
exchange visitor's home country; or
(3) Part of a health benefits program offered on a group basis to
employees or enrolled students by a designated sponsor; or
(4) Offered through or underwritten by a federally qualified
Health Maintenance Organization (HMO) or eligible Competitive
Medical Plan (CMP) as determined by the Health Care Financing
Administration of the U.S. Department of Health and Human
(d) Federal, state or local government agencies, state colleges
and universities, and public community colleges may, if permitted
by law, self-insure any or all of the above-required insurance
(e) At the request of a non-governmental sponsor of an exchange
visitor program, and upon a showing that such sponsor has funds
readily available and under its control sufficient to meet the
requirements of this section, the Agency may permit the sponsor
to self-insure or to accept full financial responsibility for
such requirements.
(f) The Agency, in its sole discretion, may condition its
approval of self-insurance or the acceptance of full financial
responsibility by the non-governmental sponsor by requiring such
sponsor to secure a payment bond in favor of the Agency
guaranteeing the sponsor's obligations hereunder.
(g) An accompanying spouse or dependent of an exchange visitor is
required to be covered by insurance in the amounts set forth in
Sec. 514.14(a) above.  Sponsors shall inform exchange visitors of
this requirement, in writing, in advance of the exchange
visitor's arrival in the United States.
(h) An exchange visitor who willfully fails to maintain the
insurance coverage set forth above while a participant in an
exchange visitor program or who makes a material
misrepresentation to the sponsor concerning such coverage shall
be deemed to be in violation of these regulations shall not be
subject to termination as a participant.
(i) A sponsor shall terminate an exchange visitor's participation
in its program if the sponsor determines that the exchange
visitor or any accompanying spouse or dependent willfully fails
to remain in compliance with this section.
[58 FR 15196, Mar. 19, 1993, as amended at 59 FR 34761, July 7,