SCS/SB 324 - This act regulates the offer and dissemination of travel insurance and establishes a limited lines travel insurance producer licensure system. The act provides that a travel retailer may offer and disseminate travel insurance on behalf of and under a travel insurance producer only if the travel insurance producer or travel retailer provides to purchasers of travel insurance a description of the material terms of the coverage, establishes and maintains a register of each travel retailer that offers travel insurance, has a designated producer responsible for complying with the travel insurance laws, complies with fingerprinting requirements, pays all producer licensing fees and provides employee training.
This act creates a limited lines travel insurance producer licensing system. Under the act, a travel retailer may offer and disseminate travel insurance on behalf of and under the control of a limited lines travel insurance producer if certain conditions are met. The limited lines travel insurance producer or travel retailer must provide to purchasers of travel insurance:
(1) A description of the material terms or the actual material terms of the insurance coverage;
(2) A description of the process for filing a claim;
(3) A description of the review or cancellation process for the travel insurance policy; and
(4) The identity and contact information of the insurer and limited lines travel insurance producer.
At the time of licensure, the limited lines travel insurance producer must establish and maintain a register of each travel retailer that offers travel insurance on the limited lines travel insurance producer's behalf. The register must be maintained and updated annually by the producer and must contain certain information delineated by the act.
The act requires a producer to designate one of its employees who is a licensed individual producer as a person responsible for the business entity's compliance with the travel insurance laws, rules, and regulations of the state.
A travel retailer may offer travel insurance under a limited license if its producer requires each employee and authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a program of instruction or training, which may be subject to review by the director. The training material must contain instructions on the types of insurance offered, ethical sales practices, and required disclosures to prospective customers.
Under the act, travel retailers offering travel insurance must make brochures or other written materials available to prospective purchasers containing certain information (contact information, explanation that travel insurance is not required to purchase other travel services from the retailer, etc.).
Under the act, travel retailer employees or authorized representatives who are not licensed producers may not interpret the terms of travel insurance policies, provide advice concerning a prospective purchaser's existing insurance coverage, or hold himself out as a licensed insurer, producer, or insurance expert.
Travel insurance may be provided under an individual policy or under a group or master policy.
Under the act, limited lines travel insurance producers are responsible for the acts of travel retailers.
Limited lines travel insurance producers and travel retailers offering travel insurance under limited lines travel insurance producers licenses are subject to the two major chapters of the state insurance code.
The act authorizes the director to promulgate rules to administer the provisions of the act.