US Insurer Excludes NFT Coverage from $20 Million Policy

CNA Financial, the seventh-largest commercial insurer in the United States, has excluded coverage for nonfungible tokens (NFTs) from the $20 million policy of Schwab Strategic Trust.

In a filing with the US Securities and Exchange Commission (SEC), the insurer stated that the bond does not cover “any loss, injury, claim, occurrence, or suit relating to NFTs.

The filing defined NFTs as follows: With the appended clause, the insurer will not cover any losses related to NFTs. Despite the exclusion of NFTs from the policy, the document clarified that “cryptocurrency” is not included in its definition of NFTs.

“Any unique digital identifier connected to any digital ledger technology which may be used to certify authenticity or ownership of anything, including but not limited to any digital, tangible, or intangible item, but cannot be substituted or exchanged for any similar item.”

During the bull market of 2021, NFTs regained their popularity, with numerous celebrities and corporations hopping on the bandwagon. However, a few years later, NFTs exhibited a steep decline in terms of their prices and trading volume.

On August 3, the gas consumption of NFTs decreased, signifying a change in the landscape. Despite the declining popularity of NFTs, some celebrities and businesses continue to invest in them.

On September 4, soccer superstar Cristiano Ronaldo stated under a lie detector test that he intends to release more NFTs in the future.

To commemorate the introduction of his second NFT collection with the cryptocurrency exchange Binance, a lie detector test was administered.An airline has also recently implemented NFTs into its loyalty program, in addition to Ronaldo.

On August 31, Lufthansa released an NFT app that allows users to redeem NFTs by scanning their boarding permits. Once accumulated, NFTs can qualify passengers for perks like flight upgrades and lounge access.