Bill Text: IA HSB689 | 2021-2022 | 89th General Assembly | Introduced
Bill Title: A bill for an act relating to the sale of travel insurance.(See HF 2540.)
Spectrum: Committee Bill
Status: (Introduced - Dead) 2022-02-28 - Committee report approving bill, renumbered as HF 2540. [HSB689 Detail]
Download: Iowa-2021-HSB689-Introduced.html
House
Study
Bill
689
-
Introduced
HOUSE
FILE
_____
BY
(PROPOSED
COMMITTEE
ON
COMMERCE
BILL
BY
CHAIRPERSON
LUNDGREN)
A
BILL
FOR
An
Act
relating
to
the
sale
of
travel
insurance.
1
BE
IT
ENACTED
BY
THE
GENERAL
ASSEMBLY
OF
THE
STATE
OF
IOWA:
2
TLSB
5641YC
(4)
89
ko/rn
H.F.
_____
Section
1.
NEW
SECTION
.
515K.1
Short
title.
1
This
chapter
shall
be
known
and
may
be
cited
as
the
“Travel
2
Insurance
Model
Act”
.
3
Sec.
2.
NEW
SECTION
.
515K.2
Definitions.
4
As
used
in
this
chapter,
unless
the
context
otherwise
5
requires:
6
1.
“Aggregator
site”
means
an
internet
site
that
provides
7
access
to
information
regarding
insurance
products,
including
8
product
and
insurer
information,
that
is
obtained
from
more
9
than
one
insurer
for
use
by
consumers
in
comparison
shopping.
10
2.
“Blanket
travel
insurance”
means
a
policy
of
travel
11
insurance
issued
to
any
eligible
group
that
provides
coverage
12
for
specific
classes
of
persons
as
defined
in
the
policy,
with
13
coverage
provided
to
all
members
of
the
eligible
group
without
14
a
separate
charge
to
individual
members
of
the
eligible
group.
15
3.
“Cancellation
fee
waiver”
means
a
contractual
agreement
16
between
a
supplier
of
travel
services
and
the
supplier’s
17
customers
to
waive
some
or
all
of
the
nonrefundable
18
cancellation
fee
provisions
of
the
supplier’s
underlying
travel
19
contract
with
or
without
regard
to
the
reason
for
cancellation
20
or
to
the
form
of
reimbursement.
A
cancellation
fee
waiver
21
shall
not
be
considered
insurance.
22
4.
“Commissioner”
means
the
commissioner
of
insurance.
23
5.
“Designated
responsible
producer”
means
an
employee
of
24
a
limited
lines
travel
insurance
producer
who
is
a
licensed
25
individual
insurance
producer
and
who
is
designated
by
the
26
limited
lines
travel
insurance
producer
as
the
individual
27
responsible
for
compliance
with
the
travel
insurance
laws
and
28
regulations
applicable
to
the
limited
lines
travel
insurance
29
producer
and
the
limited
lines
travel
insurance
producer’s
30
registrants.
31
6.
“Eligible
group”
means
two
or
more
persons
who
32
are
engaged
in
a
common
enterprise,
or
have
an
economic,
33
educational,
or
social
affinity
or
relationship,
including
but
34
not
limited
to
any
of
the
following:
35
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a.
An
entity
engaged
in
the
business
of
providing
travel
1
or
travel
services,
including
but
not
limited
to
a
tour
2
operator,
a
lodging
provider,
a
vacation
property
owner,
a
3
hotel,
a
resort,
a
travel
club,
a
travel
agency,
a
property
4
manager,
a
cultural
exchange
program,
and
a
common
carrier
or
5
the
operator,
owner,
or
lessor
of
a
means
of
transportation
6
of
passengers
including
but
not
limited
to
an
airline,
a
7
cruise
line,
a
railroad,
a
steamship
company,
and
a
public
bus
8
carrier,
where
with
regard
to
any
particular
travel
or
type
of
9
travel
or
travelers,
all
members
or
customers
have
a
common
10
exposure
to
risk
attendant
to
such
travel.
11
b.
A
college,
school,
or
other
institution
of
learning,
12
including
all
students,
teachers,
employees,
and
volunteers
of
13
the
college,
school,
or
other
institution
of
learning.
14
c.
An
employer,
including
all
employees,
volunteers,
15
contractors,
and
members
of
the
employer’s
board
of
directors;
16
and
all
dependents
and
guests
of
an
employee,
a
volunteer,
a
17
contractor,
or
a
member
of
the
employer’s
board
of
directors.
18
d.
A
sports
team,
sports
camp,
or
a
sponsor
of
a
sports
team
19
or
sports
camp,
including
all
participants,
members,
campers,
20
employees,
officials,
supervisors,
or
volunteers
of
the
sports
21
team,
sports
camp,
or
the
sponsor
of
a
sports
team
or
sports
22
camp.
23
e.
A
religious,
charitable,
recreational,
educational,
24
or
civic
organization,
including
any
group
of
members,
25
participants,
and
volunteers
of
the
religious,
charitable,
26
recreational,
educational,
or
civic
organization.
27
f.
A
financial
institution,
a
financial
institution
vendor,
28
or
a
parent
holding
company,
trustee,
agent
of,
or
agent
29
designated
by,
one
or
more
financial
institutions
or
financial
30
institution
vendors,
including
account
holders,
credit
card
31
holders,
debtors,
guarantors,
and
purchasers.
32
g.
An
incorporated
or
unincorporated
association,
including
33
a
labor
union,
that
has
a
common
interest,
a
constitution,
and
34
bylaws;
and
that
is
organized
and
maintained
in
good
faith
for
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a
purpose
other
than
obtaining
insurance
for
the
members
or
1
participants
of
the
association.
2
h.
A
trust
or
a
trustee
of
a
fund
established,
created,
or
3
maintained
for
the
benefit
of
and
covering
members,
employees,
4
or
customers,
and
that
is
subject
to
the
commissioner
5
permitting
the
use
of
a
trust
and
the
premium
tax
provisions
6
under
section
515K.8,
of
one
or
more
associations
meeting
the
7
requirements
under
paragraph
“g”
.
8
i.
An
entertainment
production
company
including
all
9
participants,
volunteers,
audience
members,
contestants,
and
10
workers.
11
j.
A
volunteer
fire
department,
ambulance
or
rescue
12
organization,
first
aid
organization,
civil
defense
13
organization,
and
similar
volunteer
organizations.
14
k.
A
preschool,
or
a
day
care
facility
for
children
or
15
adults.
16
l.
An
organization
for
senior
citizens.
17
m.
An
automobile
or
truck
rental
or
leasing
company
that
18
covers
a
group
of
individuals
who
may
become
renters,
lessees,
19
or
passengers
as
defined
by
an
individual’s
travel
status
on
20
the
rented
or
leased
automobile
or
truck.
The
common
carrier,
21
the
operator,
owner,
or
lessor
of
a
means
of
transportation,
22
or
the
automobile
or
truck
rental
or
leasing
company
is
the
23
policyholder
under
a
policy
to
which
this
chapter
applies.
24
n.
Any
other
group,
as
established
by
the
commissioner
by
25
rule,
in
which
the
members
are
engaged
in
a
common
enterprise,
26
or
have
an
economic,
educational,
or
social
affinity
or
27
relationship,
and
for
which
issuance
of
a
travel
insurance
28
policy
is
not
contrary
to
the
public
interest.
29
7.
“Fulfillment
materials”
means
documentation
provided
to
30
the
purchaser
of
a
travel
protection
plan
that
confirms
the
31
purchase
and
that
provides
details
of
the
travel
protection
32
plan
coverage
and
the
travel
assistance
services.
33
8.
“Group
travel
insurance”
means
travel
insurance
that
is
34
issued
to
an
eligible
group.
35
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9.
“Limited
lines
travel
insurance
producer”
means
any
of
the
1
following:
2
a.
A
licensed
managing
general
agent
or
a
licensed
3
third-party
administrator.
4
b.
A
licensed
insurance
producer,
including
a
licensed
5
limited
lines
producer.
6
c.
A
travel
administrator.
7
10.
“Offer
and
disseminate”
means
to
provide
general
8
information
regarding
travel
insurance
or
a
travel
protection
9
plan,
including
a
description
of
the
coverage
and
price,
and
10
to
process
an
application
and
collect
premiums
for
travel
11
insurance
or
a
travel
protection
plan.
12
11.
“Primary
certificate
holder”
means
an
individual
who
has
13
elected
and
purchased
travel
insurance
under
a
group
policy.
14
12.
“Primary
policyholder”
means
an
individual
who
has
15
elected
and
purchased
individual
travel
insurance.
16
13.
“Travel
administrator”
means
a
person
who
directly
17
or
indirectly
underwrites,
collects
charges,
collateral,
or
18
premiums
from,
or
adjusts
or
settles
claims
on,
residents
19
of
this
state
in
connection
with
travel
insurance.
“Travel
20
administrator”
shall
not
include
a
person
whose
only
actions
21
that
would
otherwise
cause
the
person
to
be
considered
a
travel
22
administrator
are
any
of
the
following:
23
a.
A
person
that
works
for
a
travel
administrator
to
24
the
extent
that
the
person’s
activities
are
subject
to
the
25
supervision
and
control
of
the
travel
administrator.
26
b.
A
person
that
is
an
insurance
producer
and
who
sells
27
insurance
or
is
engaged
in
administrative
and
claims-related
28
activities
within
the
scope
of
the
person’s
producers
license.
29
c.
A
person
that
is
a
travel
retailer
that
offers
and
30
disseminates
travel
insurance
and
that
is
registered
under
the
31
license
of
a
limited
lines
travel
insurance
producer.
32
d.
An
individual
who
adjusts
or
settles
claims
in
the
33
normal
course
of
the
individual’s
practice
or
employment
as
34
an
attorney
and
who
does
not
collect
charges
or
premiums
in
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connection
with
insurance
coverage.
1
e.
A
business
entity
that
is
affiliated
with
a
licensed
2
insurer
while
acting
as
a
travel
administrator
for
the
direct
3
and
assumed
insurance
business
of
an
affiliated
insurer.
4
14.
“Travel
assistance
services”
means
a
non-insurance,
5
non-insurance-related
service
for
which
a
consumer
is
not
6
indemnified
based
on
a
fortuitous
event
and
for
which
provision
7
of
the
service
does
not
result
in
the
transfer
or
shifting
of
8
risk
that
constitutes
the
business
of
insurance,
including
but
9
not
limited
to
any
of
the
following
services:
10
a.
Security
advisories.
11
b.
Destination
information.
12
c.
Vaccination
and
immunization
information
services.
13
d.
Travel
reservation
services.
14
e.
Entertainment
planning.
15
f.
Activity
and
event
planning.
16
g.
Translation
assistance.
17
h.
Emergency
messaging.
18
i.
International
legal
and
medical
referrals.
19
j.
Medical
case
monitoring.
20
k.
Coordination
of
transportation
arrangements.
21
l.
Emergency
cash
transfer
assistance.
22
m.
Medical
prescription
replacement
assistance.
23
n.
Passport
and
travel
document
replacement
assistance.
24
o.
Lost
luggage
assistance.
25
p.
Concierge
services.
26
q.
Any
other
service
furnished
in
connection
with
planned
27
travel.
28
15.
a.
“Travel
insurance”
means
insurance
coverage
for
29
personal
risks
incident
to
planned
travel
including
all
of
the
30
following:
31
(1)
Interruption
or
cancellation
of
a
trip
or
event.
32
(2)
Loss
of
baggage
or
personal
effects.
33
(3)
Damage
to
an
accommodation
or
to
a
rental
vehicle.
34
(4)
Sickness,
accident,
disability,
or
death
occurring
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during
travel.
1
(5)
Emergency
evacuation.
2
(6)
Repatriation
of
remains.
3
(7)
Any
other
contractual
obligation
to
indemnify
or
pay
a
4
specified
amount
to
a
traveler
upon
a
determinable
contingency
5
related
to
travel
as
established
by
the
commissioner
by
rule.
6
b.
“Travel
insurance”
shall
not
include
a
major
medical
plan
7
that
provides
comprehensive
medical
protection
for
a
traveler
8
for
a
trip
that
lasts
longer
than
six
months,
including
a
9
traveler
who
works
or
resides
overseas
as
an
expatriate,
or
10
any
other
product
that
requires
a
specific
insurance
producer
11
license.
12
16.
“Travel
protection
plan”
means
a
product
that
provides
13
one
or
more
of
any
of
the
following:
14
a.
Travel
insurance.
15
b.
Travel
assistance
services.
16
c.
Cancellation
fee
waivers.
17
17.
“Travel
retailer”
means
a
business
entity
that
makes,
18
arranges,
or
offers
planned
travel
and
that
may
offer
and
19
disseminate
travel
insurance
as
a
service
to
the
business’s
20
customers
on
behalf
of
and
under
the
direction
of
a
limited
21
lines
travel
insurance
producer.
22
Sec.
3.
NEW
SECTION
.
515K.3
Licensing
and
registration
——
23
limited
lines
travel
insurance
producers
and
travel
retailers.
24
1.
a.
The
commissioner
may
issue
a
limited
lines
travel
25
insurance
producer
license
to
a
person
that
has
filed
an
26
application
for
a
limited
lines
travel
insurance
producer
27
license
in
the
form
and
manner
prescribed
by
the
commissioner
28
by
rule.
29
b.
A
limited
lines
travel
insurance
producer
must
be
30
licensed
to
sell,
solicit,
or
negotiate
travel
insurance
31
through
a
licensed
insurer.
A
person
shall
not
act
as
a
32
limited
lines
travel
insurance
producer,
or
as
a
travel
33
retailer,
unless
the
person
is
licensed
as
a
limited
lines
34
travel
insurance
producer
or
is
registered
as
a
travel
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retailer.
1
2.
A
travel
retailer
may
offer
and
disseminate
travel
2
insurance
under
a
limited
lines
travel
insurance
producer’s
3
license
only
if
all
of
the
following
conditions
are
satisfied:
4
a.
The
travel
retailer
or
the
limited
lines
travel
insurance
5
producer
provides
all
of
the
following
to
a
purchaser
of
travel
6
insurance:
7
(1)
A
description
of
the
material
terms,
or
the
actual
8
material
terms,
of
the
travel
insurance
coverage.
9
(2)
A
description
of
the
claim
filing
process.
10
(3)
A
description
of
the
review
and
cancellation
process.
11
(4)
The
identity
of,
and
the
contact
information
for,
the
12
insurer
and
the
limited
lines
travel
insurance
producer.
13
b.
(1)
Beginning
on
the
date
of
licensure,
a
limited
14
lines
travel
insurance
producer
shall
establish
and
maintain
a
15
register,
in
the
form
and
manner
prescribed
by
the
commissioner
16
by
rule,
of
each
travel
retailer
that
offers
travel
insurance
17
on
behalf
of
the
limited
lines
travel
insurance
producer.
The
18
register
shall
include
all
of
the
following
information:
19
(a)
The
name,
address,
and
contact
information
of
each
20
travel
retailer.
21
(b)
The
name,
address,
and
contact
information
of
an
22
officer
or
other
individual
who
directs
or
controls
each
travel
23
retailer’s
operations.
24
(c)
Each
travel
retailer’s
federal
tax
identification
25
number.
26
(2)
A
limited
lines
travel
insurance
producer
shall
submit
27
the
register
under
subparagraph
(1)
to
the
commissioner
upon
28
the
commissioner’s
reasonable
request,
and
shall
certify
that
29
the
register
complies
with
18
U.S.C.
§1033.
30
(3)
Provisions
under
Title
XIII,
subtitle
1,
that
are
31
applicable
to
the
suspension
or
revocation
of
a
resident
32
insurance
producer’s
license,
or
to
the
imposition
of
penalties
33
on
a
resident
insurance
producer,
shall
be
applicable
to
34
limited
lines
travel
insurance
producers
and
travel
retailers.
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c.
The
limited
lines
travel
insurance
producer
has
a
1
designated
responsible
producer.
2
d.
The
designated
responsible
producer,
president,
3
secretary,
treasurer,
and
any
other
officer
or
individual
4
who
directs
or
controls
the
limited
lines
travel
insurance
5
producer’s
insurance
operations
has
complied
with
all
6
fingerprinting
requirements
applicable
to
insurance
producers
7
in
this
state.
8
e.
The
limited
lines
travel
insurance
producer
has
paid
all
9
licensing
fees
required
by
state
law.
10
f.
The
limited
lines
travel
insurance
producer
requires
11
each
employee
and
each
authorized
representative
of
the
travel
12
retailer
who
offers
and
disseminates
travel
insurance
to
13
successfully
complete
a
training
program
that,
at
a
minimum,
14
educates
each
employee
and
each
authorized
representative
on
15
the
details
of
each
type
of
insurance
offered
by
the
travel
16
retailer,
ethical
sales
practices,
and
all
disclosures
that
are
17
required
to
be
made
to
prospective
purchasers.
18
3.
A
travel
retailer
that
offers
and
disseminates
travel
19
insurance
shall
make
brochures
or
other
written
materials
20
that
have
been
approved
by
the
travel
insurer
available
21
to
prospective
purchasers.
The
brochures
or
other
written
22
materials
shall,
at
a
minimum,
do
all
of
the
following:
23
a.
Provide
the
name,
address,
and
telephone
number
of
the
24
insurer
and
the
limited
lines
travel
insurance
producer.
25
b.
Advise
that
the
purchase
of
travel
insurance
by
the
26
prospective
purchaser
is
not
required
in
order
to
purchase
any
27
other
product
or
service
from
the
travel
retailer.
28
c.
Explain
that
a
travel
retailer
that
is
not
licensed
as
29
an
insurance
producer
is
only
permitted
to
provide
general
30
information
about
travel
insurance
offered
by
the
travel
31
retailer,
including
a
description
of
the
coverage
and
price;
32
however,
the
travel
retailer
is
not
qualified
or
authorized
33
to
answer
technical
questions
about
the
terms
and
conditions
34
of
the
travel
insurance,
or
to
evaluate
the
adequacy
of
the
35
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prospective
purchaser’s
existing
insurance
coverage.
1
4.
A
travel
retailer’s
employee
or
authorized
2
representative
who
is
not
licensed
as
an
insurance
producer
3
shall
not
do
any
of
the
following:
4
a.
Evaluate
or
interpret
the
technical
terms,
benefits,
5
or
conditions
of
travel
insurance
offered
to
a
prospective
6
purchaser.
7
b.
Evaluate
or
provide
advice
on
a
prospective
purchaser’s
8
existing
insurance
coverage.
9
c.
Represent
themselves
as
a
licensed
insurer,
a
licensed
10
insurance
producer,
or
as
an
insurance
expert.
11
5.
Notwithstanding
any
other
provision
of
law
to
the
12
contrary,
a
travel
retailer
whose
insurance-related
activities
13
and
the
insurance-related
activities
of
the
travel
retailer’s
14
employees
and
authorized
representatives
are
limited
to
15
offering
and
disseminating
travel
insurance
on
behalf
of
16
and
under
the
direction
of
a
limited
lines
travel
insurance
17
producer
in
compliance
with
this
chapter,
shall
be
authorized
18
to
receive
related
compensation
if
the
travel
retailer
is
19
included
in
the
register
maintained
by
the
limited
lines
travel
20
insurance
producer
under
subsection
2,
paragraph
“b”
.
21
6.
As
an
insurer’s
designee,
a
limited
lines
travel
22
insurance
producer
shall
be
responsible
for
the
acts
of
each
23
travel
retailer
that
offers
and
disseminates
travel
insurance
24
under
the
limited
lines
travel
insurance
producer’s
license
and
25
shall
use
reasonable
means
to
ensure
that
each
travel
retailer
26
complies
with
this
chapter.
27
7.
A
person
that
is
licensed
as
an
insurance
producer
in
a
28
major
line
of
authority
shall
be
authorized
to
sell,
solicit,
29
and
negotiate
travel
insurance.
A
property
and
casualty
30
insurance
producer
shall
not
be
required
to
become
appointed
31
by
an
insurer
in
order
to
sell,
solicit,
or
negotiate
travel
32
insurance.
33
Sec.
4.
NEW
SECTION
.
515K.4
Travel
protection
plans.
34
A
travel
protection
plan
may
be
offered
in
this
state
at
one
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price
for
all
features
included
in
the
travel
protection
plan
1
if
all
of
the
following
are
true:
2
1.
The
travel
protection
plan
clearly
discloses
to
the
3
purchaser,
at
or
prior
to
the
time
of
purchase,
that
the
travel
4
protection
plan
includes,
as
applicable,
travel
insurance,
5
travel
assistance
services,
and
cancellation
fee
waivers.
6
2.
A
purchaser
is
provided
with
an
opportunity
at
or
prior
7
to
the
time
of
purchase
to
obtain
additional
details
regarding
8
each
feature
and
the
cost
of
each
feature.
9
3.
The
fulfillment
materials
provided
to
the
purchaser
do
10
all
of
the
following:
11
a.
Describe
and
delineate
the
travel
insurance,
travel
12
assistance
services,
and
cancellation
fee
waivers
included
in
13
the
travel
protection
plan.
14
b.
Include,
as
applicable,
travel
insurance
disclosures
15
and
the
contact
information
for
all
persons
providing
travel
16
assistance
services
and
cancellation
fee
waivers.
17
c.
Describe,
as
applicable,
all
preexisting
condition
18
exclusions
included
in
the
travel
insurance
policy.
19
Sec.
5.
NEW
SECTION
.
515K.5
Sales
and
marketing
practices.
20
1.
All
persons
offering
travel
insurance
to
residents
of
21
this
state
shall
be
subject
to
sections
507B.3
and
507B.4,
22
except
as
otherwise
provided
in
this
section.
In
the
event
of
23
a
conflict
between
this
chapter
and
another
provision
under
24
Title
XIII,
subtitle
1,
regarding
the
sale
and
marketing
of
25
travel
insurance
and
travel
protection
plans,
this
chapter
26
shall
control.
27
2.
a.
Any
document
provided
to
a
prospective
purchaser
28
prior
to
the
prospective
purchaser’s
purchase
of
travel
29
insurance,
including
but
not
limited
to
sales,
advertising,
30
and
marketing
materials,
shall
be
consistent
with
the
31
travel
insurance
policy,
including
but
not
limited
to
forms,
32
endorsements,
policies,
rate
filings,
and
certificates
of
33
insurance.
34
b.
If
a
travel
insurance
policy
or
a
travel
insurance
35
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certificate
contains
any
preexisting
condition
exclusion,
a
1
prospective
purchaser
shall,
any
time
prior
to
the
time
of
2
purchase,
be
provided
an
opportunity
to
learn
more
about
the
3
preexisting
condition
exclusion.
Any
preexisting
condition
4
exclusion
shall
also
be
included
in
the
travel
insurance
policy
5
or
travel
insurance
certificate
fulfillment
materials.
6
c.
The
fulfillment
materials
and
the
information
described
7
in
section
515K.4
shall
be
provided
to
a
primary
policyholder
8
or
to
a
primary
certificate
holder
as
soon
as
practicable
9
following
the
policyholder’s
or
the
certificate
holder’s
10
purchase
of
a
travel
protection
plan.
From
the
date
of
11
purchase
of
a
travel
protection
plan,
a
primary
policyholder
12
or
a
primary
certificate
holder
may
cancel
the
policy
or
the
13
certificate
for
a
full
refund
of
the
purchase
price
of
the
14
travel
protection
plan
until
the
first
occurrence
of
any
of
the
15
following:
16
(1)
An
insured
has
begun
travel
that
is
covered
under
the
17
travel
protection
plan.
18
(2)
An
insured
has
filed
a
claim
under
the
travel
protection
19
plan.
20
(3)
It
has
been
at
least
fifteen
days
since
the
date
of
21
delivery
via
the
United
States
postal
service
of
the
travel
22
protection
plan’s
fulfillment
materials
to
the
policyholder
or
23
the
certificate
holder.
24
(4)
It
has
been
ten
or
more
calendar
days
following
the
date
25
of
delivery
by
electronic
means,
in
compliance
with
chapter
26
505B,
of
the
travel
protection
plan’s
fulfillment
materials
to
27
the
policyholder
or
the
certificate
holder.
28
d.
An
insurer
shall
disclose
in
the
policy
documentation
29
and
fulfillment
materials
provided
to
the
purchaser
of
travel
30
insurance
whether
the
travel
insurance
is
primary
or
secondary
31
to
any
other
applicable
insurance
coverage.
32
e.
If
travel
insurance
is
marketed
directly
to
consumers
33
through
an
insurer’s
internet
site,
or
by
another
person
via
34
an
aggregator
site,
it
shall
not
be
an
unfair
trade
practice
35
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or
other
violation
of
law
for
the
insurer
or
the
other
person
1
to
provide
an
accurate
summary
or
short
description
of
the
2
available
insurance
coverage,
if
all
provisions
of
each
3
available
travel
insurance
policy
are
easily
accessible
to
4
consumers
via
electronic
means.
5
3.
No
person
shall
offer,
solicit,
or
negotiate
travel
6
insurance
or
a
travel
protection
plan
on
an
individual
or
group
7
basis
through
use
of
a
negative
option
or
an
opt
out
that
8
requires
a
consumer
to
take
an
affirmative
action
to
deselect
9
coverage,
including
but
not
limited
to
unchecking
a
box
on
an
10
electronic
form,
if
the
consumer
purchases
travel
insurance
or
11
a
travel
protection
plan.
12
4.
It
shall
be
an
unfair
trade
practice
pursuant
to
section
13
507B.3
and
section
507B.4
to
do
any
of
the
following:
14
a.
Offer
or
sell
a
travel
insurance
policy
that,
due
to
an
15
exclusion
or
other
provisions
in
the
policy,
cannot
result
in
16
payment
of
any
claim
made
by
any
insured
under
the
policy.
17
b.
Market
blanket
travel
insurance
coverage
as
no
cost
18
coverage.
19
5.
If
a
consumer’s
travel
destination
is
located
in
a
20
jurisdiction
that
mandates
specific
insurance
coverage,
it
21
shall
not
be
an
unfair
trade
practice
to
require
that
the
22
consumer,
as
a
condition
of
purchasing
a
travel
package,
select
23
one
of
the
following
options:
24
a.
Purchase
of
the
coverage
required
by
the
destination
25
jurisdiction
through
either
the
travel
retailer
or
the
limited
26
lines
travel
insurance
producer
that
provides
the
travel
27
package.
28
b.
Agree
to
obtain
and
provide
proof
of
coverage
that
29
meets
the
destination
jurisdiction’s
requirements
prior
to
the
30
consumer’s
departure.
31
Sec.
6.
NEW
SECTION
.
515K.6
Travel
administrators.
32
1.
Notwithstanding
any
provision
of
Title
XIII,
subtitle
33
1,
to
the
contrary,
a
person
shall
not
act
as,
or
represent
34
itself
as,
a
travel
administrator
for
travel
insurance
in
this
35
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state
unless
the
person
meets
at
least
one
of
the
following
1
requirements:
2
a.
The
person
is
a
licensed
property
and
casualty
insurance
3
producer
in
this
state.
4
b.
The
person
is
in
compliance
with
all
laws
and
regulations
5
that
are
applicable
to
managing
general
agents
in
this
state.
6
c.
The
person
is
in
compliance
with
all
laws
and
regulations
7
that
are
applicable
to
third-party
administrators
in
this
8
state.
9
2.
An
insurer
shall
be
responsible
for
the
acts
of
a
travel
10
administrator
administering
travel
insurance
underwritten
by
11
the
insurer,
and
for
ensuring
that
the
travel
administrator
12
maintains
all
records
related
to
the
insurer
and
makes
the
13
records
available
to
the
commissioner
upon
request
of
the
14
commissioner.
15
Sec.
7.
NEW
SECTION
.
515K.7
Rates,
forms,
eligibility,
and
16
underwriting.
17
1.
Notwithstanding
any
provision
of
Title
XIII,
subtitle
1,
18
to
the
contrary,
travel
insurance
shall
be
classified
and
filed
19
for
purposes
of
rates
and
forms
under
an
inland
marine
line
of
20
insurance
provided
that
travel
insurance
that
provides
coverage
21
for
sickness,
accident,
disability
or
death
occurring
during
22
travel,
either
exclusively,
or
in
conjunction
with
related
23
coverages
of
emergency
evacuation
or
repatriation
of
remains,
24
or
incidental
limited
property
and
casualty
benefits
such
as
25
baggage
or
trip
cancellation,
may
be
filed
under
either
an
26
accident
and
health
line
of
insurance
or
an
inland
marine
line
27
of
insurance.
28
2.
Travel
insurance
may
be
issued
in
the
form
of
an
29
individual
insurance
policy,
a
group
travel
insurance
policy,
30
or
a
blanket
travel
insurance
policy.
31
3.
Eligibility
and
underwriting
standards
for
travel
32
insurance
may
be
developed
and
provided
based
on
travel
33
protection
plans
designed
for
individual
or
identified
34
marketing
or
distribution
channels,
provided
that
the
standards
35
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also
meet
the
state’s
underwriting
standards
for
the
line
of
1
insurance.
2
Sec.
8.
NEW
SECTION
.
515K.8
Tax
on
gross
premiums.
3
1.
An
insurer
that
offers
travel
insurance
shall
pay
tax
4
on
gross
premiums,
as
provided
in
section
432.1,
on
travel
5
insurance
premiums
paid
by
any
of
the
following:
6
a.
A
primary
policyholder
who
is
a
resident
of
this
state.
7
b.
A
primary
certificate
holder
who
is
a
resident
of
this
8
state.
9
c.
A
blanket
travel
insurance
policyholder
that
is
a
10
resident
of
this
state,
or
that
has
the
policyholder’s
11
principal
place
of
business
or
the
principal
place
of
business
12
of
an
affiliate
or
subsidiary
that
has
purchased
blanket
13
travel
insurance
in
this
state
for
eligible
blanket
group
14
members,
subject
to
any
apportionment
rules
that
apply
to
the
15
insurer
across
multiple
taxing
jurisdictions,
or
that
permit
16
the
insurer
to
allocate
premiums
on
an
apportioned
basis
in
a
17
reasonable
and
equitable
manner
in
those
taxing
jurisdictions.
18
2.
An
insurer
that
offers
travel
insurance
shall
do
all
of
19
the
following:
20
a.
Document
the
state
of
residence
or
the
state
of
the
21
principal
place
of
business
of
the
primary
policyholder
or
22
primary
certificate
holder.
23
b.
Report
as
premiums
only
the
amount
allocable
to
travel
24
insurance,
and
not
report
any
amounts
received
from
travel
25
assistance
services
or
cancellation
fee
waivers.
26
Sec.
9.
NEW
SECTION
.
515K.9
Applicability.
27
1.
This
chapter
shall
apply
to
travel
insurance
that
covers
28
any
resident
of
this
state,
and
travel
insurance
that
is
sold,
29
solicited,
negotiated,
or
offered
in
this
state,
and
to
any
30
travel
insurance
policy
or
certificate
that
is
delivered
or
31
issued
for
delivery
in
this
state.
This
chapter
shall
not
32
apply
to
cancellation
fee
waivers
or
to
travel
assistance
33
services
except
as
expressly
provided
in
this
chapter.
34
2.
All
applicable
provisions
of
Title
XIII,
subtitle
1,
35
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shall
apply
to
travel
insurance
except
that
specific
provisions
1
of
this
chapter
shall
supersede
any
general
provisions
of
Title
2
XIII,
subtitle
1,
that
are
otherwise
applicable
to
travel
3
insurance.
4
Sec.
10.
NEW
SECTION
.
515K.10
Rules.
5
The
commissioner
may
adopt
rules
pursuant
to
chapter
17A
as
6
necessary
to
implement
and
administer
this
chapter.
7
EXPLANATION
8
The
inclusion
of
this
explanation
does
not
constitute
agreement
with
9
the
explanation’s
substance
by
the
members
of
the
general
assembly.
10
This
bill
is
related
to
the
sale
of
travel
insurance
and
11
travel
protection
plans.
12
The
bill
permits
the
commissioner
of
insurance
13
(commissioner)
to
issue
a
limited
lines
travel
insurance
14
producer
(travel
insurance
producer)
license
to
a
person
that
15
files
an
application
in
the
form
and
manner
prescribed
by
the
16
commissioner.
A
travel
insurance
producer
must
be
licensed
17
to
sell,
solicit,
or
negotiate
travel
insurance
through
a
18
licensed
insurer.
“Travel
insurance”
is
defined
in
the
bill.
19
A
person
shall
not
act
as
a
travel
insurance
producer,
or
as
a
20
travel
retailer
(retailer),
unless
the
person
is
licensed
as
21
a
travel
insurance
producer
or
is
registered
as
a
retailer.
22
“Travel
retailer”
is
defined
in
the
bill.
A
retailer
may
offer
23
and
disseminate
travel
insurance
under
a
travel
insurance
24
producer’s
license
only
if
all
of
the
conditions
as
detailed
25
in
the
bill
are
satisfied.
“Offer
and
disseminate”
is
defined
26
in
the
bill.
27
The
bill
requires
that
a
retailer
that
offers
and
28
disseminates
travel
insurance
make
brochures
or
other
written
29
materials
that
have
been
approved
by
the
travel
insurer,
and
30
that
meet
the
requirements
as
detailed
in
the
bill,
available
31
to
prospective
purchasers.
The
bill
provides
that
a
retailer’s
32
employee
or
authorized
representative
who
is
not
licensed
as
33
an
insurance
producer
shall
not
evaluate
or
interpret
the
34
technical
terms,
benefits,
or
conditions
of
travel
insurance
35
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offered
to
a
prospective
purchaser;
evaluate
or
provide
advice
1
on
a
prospective
purchaser’s
existing
insurance
coverage;
or
2
hold
oneself
out
as
a
licensed
insurer,
a
licensed
insurance
3
producer,
or
an
insurance
expert.
The
bill
provides
that
as
4
an
insurer’s
designee,
a
travel
insurance
producer
shall
be
5
responsible
for
the
acts
of
each
retailer
that
offers
and
6
disseminates
travel
insurance
under
the
travel
insurance
7
producer’s
license,
and
shall
use
reasonable
means
to
ensure
8
that
each
retailer
complies
with
the
applicable
requirements
9
in
the
bill.
10
Under
the
bill,
a
person
that
is
licensed
in
a
major
line
11
of
authority
as
an
insurance
producer
shall
be
authorized
to
12
sell,
solicit,
and
negotiate
travel
insurance.
A
property
and
13
casualty
insurance
producer
shall
not
be
required
to
become
14
appointed
by
an
insurer
in
order
to
sell,
solicit,
or
negotiate
15
travel
insurance.
16
Travel
protection
plans
(plan)
may
be
offered
in
the
state
17
at
one
price
for
all
features
included
in
the
plan
if
the
18
requirements
detailed
in
the
bill
are
satisfied.
All
persons
19
offering
travel
insurance
to
residents
of
this
state
shall
20
be
subject
to
Code
sections
507B.3
and
507B.4,
except
as
21
otherwise
provided
in
the
bill.
The
bill
requires
that
any
22
document
provided
to
a
prospective
purchaser
prior
to
the
23
purchaser’s
purchase
of
travel
insurance,
including
but
not
24
limited
to
sales,
advertising,
and
marketing
materials,
is
25
consistent
with
the
travel
insurance
policy,
including
but
not
26
limited
to
forms,
endorsements,
policies,
rate
filings,
and
27
certificates
of
insurance.
If
a
travel
insurance
policy
or
a
28
travel
insurance
certificate
contains
any
preexisting
condition
29
exclusion,
a
prospective
purchaser
shall,
at
any
time
prior
to
30
the
time
of
purchase,
be
provided
an
opportunity
to
learn
more
31
about
the
exclusion.
Any
preexisting
condition
exclusion
shall
32
also
be
included
in
the
travel
insurance
policy
or
the
travel
33
insurance
certificate
fulfillment
materials.
“Fulfillment
34
materials”
is
defined
in
the
bill.
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The
bill
allows
a
primary
policyholder
or
a
primary
1
certificate
holder,
from
the
date
of
purchase
of
a
plan,
to
2
cancel
the
policy
or
certificate,
as
described
in
the
bill,
3
for
a
full
refund
of
the
purchase
price
of
the
plan.
“Primary
4
policyholder”
and
“primary
certificate
holder”
are
defined
in
5
the
bill.
An
insurer
is
required
to
disclose
in
the
policy
6
documentation
and
fulfillment
materials
provided
to
the
7
purchaser
of
travel
insurance
whether
the
travel
insurance
8
is
primary
or
secondary
to
any
other
applicable
insurance
9
coverage.
10
If
travel
insurance
is
marketed
directly
to
consumers
11
through
an
insurer’s
internet
site,
or
by
another
person
via
12
an
aggregator
site,
it
shall
not
be
an
unfair
trade
practice
13
or
other
violation
of
law
for
the
insurer
or
the
other
person
14
to
provide
an
accurate
summary
or
short
description
of
the
15
available
insurance
coverage,
if
all
provisions
of
each
16
available
travel
insurance
policy
are
easily
accessible
to
17
consumers
via
electronic
means.
“Aggregator
site”
is
defined
18
in
the
bill.
The
bill
prohibits
a
person
from
offering,
19
soliciting,
or
negotiating
travel
insurance
or
a
plan
on
an
20
individual
or
group
basis
through
use
of
a
negative
option
or
21
opt
out
that
requires
a
consumer
to
take
affirmative
action
to
22
deselect
coverage
if
the
consumer
purchases
travel
insurance
or
23
a
plan.
The
bill
provides
that
it
is
an
unfair
trade
practice
24
under
Code
sections
507B.3
and
507B.4
to
offer
or
sell
a
travel
25
insurance
policy
that,
due
to
exclusions
of
other
provisions
in
26
the
policy,
cannot
result
in
payment
of
any
claim
made
by
any
27
insured
under
the
policy;
or
to
market
blanket
travel
insurance
28
coverage
as
no
cost
coverage.
“Blanket
travel
insurance”
is
29
defined
in
the
bill
as
a
policy
of
travel
insurance
issued
to
30
any
eligible
group
that
provides
coverage
for
specific
classes
31
of
persons
as
defined
in
the
policy,
with
coverage
provided
to
32
all
members
of
the
eligible
group
without
a
separate
charge
to
33
individual
members
of
the
eligible
group.
“Eligible
group”
is
34
also
defined
in
the
bill.
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If
a
consumer’s
travel
destination
is
located
in
a
1
jurisdiction
that
mandates
specific
insurance
coverage,
the
2
bill
provides
that
it
is
not
an
unfair
trade
practice
to
3
require
that
the
consumer,
as
a
condition
of
purchasing
a
4
travel
package,
either
purchase
the
coverage
required
by
5
the
jurisdiction
through
either
the
retailer
or
the
travel
6
insurance
producer
that
provides
the
travel
package,
or
7
agree
to
obtain
and
provide
proof
of
coverage
that
meets
the
8
jurisdiction’s
requirements
prior
to
the
consumer’s
departure.
9
Notwithstanding
any
other
provisions
of
Code
Title
XIII,
10
subtitle
1,
a
person
shall
not
act
as
or
represent
itself
as,
11
a
travel
administrator
for
travel
insurance
in
this
state
12
unless
the
person
is
a
licensed
property
and
casualty
insurance
13
producer
in
this
state,
or
is
in
compliance
with
all
laws
and
14
regulations
that
are
applicable
to
managing
general
agents
15
or
to
third-party
administrators
in
this
state.
“Travel
16
administrator”
is
defined
in
the
bill.
The
bill
provides
17
that
an
insurer
is
responsible
for
the
acts
of
a
travel
18
administrator
administering
travel
insurance
underwritten
by
19
the
insurer,
and
for
ensuring
that
the
travel
administrator
20
maintains
all
records
related
to
the
insurer.
21
Notwithstanding
any
provision
of
Code
Title
XIII,
subtitle
22
1,
to
the
contrary,
travel
insurance
shall
be
classified
23
and
filed
for
purposes
of
rates
and
forms
as
detailed
in
24
the
bill.
Travel
insurance
may
be
issued
in
the
form
of
an
25
individual,
group,
or
blanket
policy.
“Group
travel
insurance”
26
is
defined
in
the
bill.
Eligibility
and
underwriting
standards
27
for
travel
insurance
may
be
developed
and
provided
based
on
28
travel
protection
plans
designed
for
individual
or
identified
29
marketing
or
distribution
channels,
provided
the
standards
also
30
meet
the
state’s
underwriting
standards
for
the
inland
marine
31
line
of
insurance.
An
insurer
that
offers
travel
insurance
32
shall
pay
tax
on
travel
insurance
premiums
as
detailed
in
the
33
bill.
34
The
bill
applies
to
travel
insurance
that
covers
any
35
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resident
of
this
state
and
to
travel
insurance
that
is
sold,
1
solicited,
negotiated,
or
offered
in
this
state,
and
to
any
2
travel
insurance
policy
or
certificate
that
is
delivered
or
3
issued
for
delivery
in
this
state.
The
bill
does
not
apply
4
to
cancellation
fee
waivers
or
to
travel
assistance
services
5
except
as
expressly
provided
in
the
bill.
“Cancellation
fee
6
waivers”
and
“travel
assistance
services”
are
defined
in
the
7
bill.
All
applicable
provisions
of
Code
Title
XIII,
subtitle
8
1,
shall
apply
to
travel
insurance
except
that
specific
9
provisions
of
the
bill
shall
supersede
any
general
provisions
10
of
Code
Title
XIII,
subtitle
1,
that
are
otherwise
applicable
11
to
travel
insurance.
12
The
commissioner
may
adopt
rules
as
necessary
to
implement
13
and
administer
the
bill.
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