SB 576

This bill allows the commissioner of insurance to issue to a person, who may be

but need not be an insurance intermediary, a limited lines travel insurance producer

license, which authorizes the licensed person (travel insurance producer) to sell,

solicit, and negotiate travel insurance through an insurer. Travel insurance is

defined in the bill as limited lines insurance coverage for personal risks incident to

planned travel, including cancellation of trip, loss of baggage, and sickness or

accident occurring during travel.

The bill authorizes a travel retailer, which is defined in the bill as a business

entity that makes, arranges, or offers travel services, that meets the conditions set

out in the bill to take certain actions related to travel insurance on behalf of and

under the control of a travel insurance producer, without having a travel insurance

producer license, including providing general information, processing applications,

and collecting premiums (offering and disseminating travel insurance). Under the

bill, such a travel insurance producer is responsible for the acts of such a travel

retailer and must use reasonable means to ensure the travel retailer's compliance

with the requirements under the bill. The bill provides that a travel retailer that is

authorized to offer and disseminate travel insurance on behalf of a travel insurance

producer may receive compensation for doing so.

For a travel retailer to offer and disseminate travel insurance on behalf of a

travel insurance producer, the travel insurance producer or travel retailer must

provide to travel insurance purchasers a description of the material terms of the

travel insurance, a description of the process for filing a claim, a description of the

policy's review or cancellation process, and the contact information of the insurer.

The travel insurance producer must pay all applicable licensing fees; must maintain

a register that provides the contact information of each travel retailer that offers and

disseminates travel insurance on its behalf; must designate an employee, who must

be an insurance intermediary, as the person responsible for ensuring that the travel

retailer complies with the applicable statutes; and must require the travel retailer's

employees and representatives whose duties include offering and disseminating

travel insurance to receive a program of instruction or training on the types of

insurance products offered, ethical sales practices, and required disclosures to

prospective customers.

A travel retailer that offers and disseminates travel insurance on behalf of a

travel insurance producer must make available to prospective travel insurance

purchasers written materials that provide the contact information of the travel

insurer and the travel insurance producer, that explain that the purchase of travel

insurance is not required for the purchase of any other product or service from the

travel retailer, and that explain the limitations on technical information that a travel

retailer who is not a travel insurance producer may provide concerning the travel

insurance. A travel retailer's employee or authorized representative who is not a