Insurer CNA Financial Excludes Coverage for NFTs, Impacts Schwab Strategic Trust's Policy
Summary:
Insurer CNA Financial excludes coverage for nonfungible tokens (NFTs) in a policy held by Schwab Strategic Trust. The exclusion means that any losses related to NFTs will not be covered. While NFTs gained popularity in 2021, they have experienced a decline in prices and trading volume. Despite this, some celebrities and businesses, such as soccer star Cristiano Ronaldo and airline Lufthansa, continue to embrace NFTs.
CNA Financial, the seventh-largest commercial insurer in the United States, has specifically excluded coverage for nonfungible tokens (NFTs) in a $20 million policy held by Schwab Strategic Trust. According to a filing submitted to the US Securities and Exchange Commission (SEC), the insurer added an exclusion stating that the policy does not cover any losses, damages, claims, occurrences, or suits related to NFTs. The filing defines NFTs as unique digital identifiers tied to any digital ledger technology that can be used to verify the authenticity or ownership of various items. Under the policy, any losses associated with NFTs will not be reimbursed by the insurer. However, it is important to note that while NFTs are excluded from coverage, the document clarifies that "cryptocurrency" does not fall under the definition of NFTs. NFTs gained significant popularity during the bullish market of 2021, attracting attention from celebrities and businesses. However, in recent years, NFTs have experienced a substantial decline in prices and trading volume. On August 3, there was a noticeable decrease in gas usage for NFTs, indicating a shift in the landscape. Despite the decrease in interest, some celebrities and businesses, including soccer star Cristiano Ronaldo and airline Lufthansa, continue to embrace NFTs. Ronaldo recently announced plans to release more NFTs, and Lufthansa launched an NFT app that allows passengers to redeem NFTs by scanning their boarding passes, earning rewards such as flight upgrades or access to lounges.
Published At
9/12/2023 8:12:03 AM
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