With Brexit approaching in March 2019, uncertainty remains about whether Britain and Brussels will reach an agreement to ensure that UK insurers can continue to pay out on policies after Britain leaves the European Union. The uncertainty related to Brexit serves as a broader warning to policyholders about the potential pitfalls that can occur when large-scale political or economic change occurs, and how that can impact an insurer's indemnity bonds under a pre-existing contract. In the case of Brexit, it remains unclear whether UK and EU regulators will permit the transfer of existing contracts across borders, or whether they will permit a contract formed and regulated under the rubric of one economic area to another. Although procedures exist for the transfer of policies from one insurer to another, the cost of such a transfer is substantial ̵
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