AB 491

This bill adopts the model travel insurance act that was approved by the

National Association of Insurance Commissioners in 2018.

Current law regulates travel insurance in several ways, including authorizing

the commissioner of insurance to issue a limited lines travel insurance producer

license to intermediaries and allowing travel retailers to offer and disseminate travel

insurance under a limited lines travel insurance firm license, subject to various

requirements imposed on the travel insurance producer and travel retailer. The bill

maintains these requirements and allows third-party administrators, managing

general agents, and “travel administrators,” defined below, to apply for a limited

lines travel insurance producer license. The bill also regulates travel insurance in

additional ways.

Travel administrators

The bill imposes requirements related to “travel administrators,” who are

defined as persons who directly or indirectly underwrite, collect charges or

premiums from, or adjust or settle claims of Wisconsin residents in connection with

travel insurance. The bill specifies that the term “travel administrator” does not

include an individual working for and subject to the supervision and control of a

travel administrator; an intermediary selling insurance or engaging in

administrative and claims related activities within the scope of the intermediary's

license; a travel retailer; an attorney acting in his or her professional capacity; or an

affiliated business entity of a licensed insurer. Under the bill, a person may only act

or represent the person as a travel administrator in Wisconsin if the person is a

licensed property and casualty insurance intermediary for activities permitted

under the license or the person holds a valid managing general agent or third-party

administrator license. The bill provides that an insurer is responsible for the acts

of a travel administrator who is administering travel insurance underwritten by the

insurer and requires that the insurer ensure that the travel administrator maintains

all relevant books and records. The bill also provides that travel administrators are

not subject to regulation as public adjusters.

Travel protection plans

The bill imposes requirements on travel protection plans, which are defined as

plans that provide any combination of travel insurance, travel assistance services,

and cancellation fee waivers. Under the bill, a travel protection plan may be offered

for one price for the combined items if there is sufficient disclosure of the items and

the plan's fulfillment materials contain specified information about the items.

Additionally, the bill provides that a person who cancels a travel protection plan that

includes travel insurance may receive a full refund if the insured has not started the

trip or filed a claim and the cancellation occurs no later than 15 days after delivery

of the fulfillment materials by postal mail or 10 days if delivered by other means,

unless the policy specifies a greater number of days.