Travel insurance should probably be required to cover all circumstances, leave it up to the courts in their home countries to assign liability (i.e. Insurance company, insured) when the insured gets back in-country. They should also make insurance mandatory before even getting on an airplane. Yeah, rates will probably go up, but having more people required to carry it, might actually bring the costs more inline with current ones. The rates could also be adjusted, denied, and based on current risks (driving records, credit rating, criminal history, etc.).