Bill Text: TX HB3554 | 2013-2014 | 83rd Legislature | Introduced
Bill Title: Relating to the business of travel insurance; authorizing penalties.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2013-03-20 - Referred to Insurance [HB3554 Detail]
Download: Texas-2013-HB3554-Introduced.html
83R11416 PMO-D | ||
By: Eiland | H.B. No. 3554 |
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relating to the business of travel insurance; authorizing | ||
penalties. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. The heading to Subchapter D, Chapter 4055, | ||
Insurance Code, is amended to read as follows: | ||
SUBCHAPTER D. TRAVEL INSURANCE [ |
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SECTION 2. Section 4055.151, Insurance Code, is amended by | ||
adding Subdivisions (1-b) and (2-b) to read as follows: | ||
(1-b) "Supervising entity" means a travel insurance | ||
supervising entity designated by an insurer under Section | ||
4055.1515. | ||
(2-b) "Travel retailer" means a business entity that | ||
makes, arranges, or offers travel services. | ||
SECTION 3. Subchapter D, Chapter 4055, Insurance Code, is | ||
amended by adding Section 4055.1515 to read as follows: | ||
Sec. 4055.1515. TRAVEL INSURANCE SUPERVISING ENTITY. An | ||
insurer authorized to engage in the business of travel insurance in | ||
this state may designate a travel insurance supervising entity for | ||
purposes of this subchapter. The supervising entity must be: | ||
(1) a licensed managing general agent; | ||
(2) a licensed third-party administrator; or | ||
(3) a licensed insurance agent. | ||
SECTION 4. Sections 4055.152 and 4055.153, Insurance Code, | ||
are amended to read as follows: | ||
Sec. 4055.152. SPECIALTY [ |
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REQUIRED. Notwithstanding any other provision of this chapter or | ||
this code, [ |
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travel retailer does not require a license issued under this title | ||
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Sec. 4055.153. AUTHORITY OF TRAVEL RETAILER [ |
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travel insurance as a service to the retailer's customers on behalf | ||
of and under the direction of a supervising entity [ |
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(1) in connection with the sale or arrangement of | ||
transportation or accommodations for travelers; and | ||
(2) with respect to travel insurance that includes: | ||
(A) accident and health insurance that provides | ||
coverage to a traveler for accidental death or dismemberment and | ||
for medical expenses resulting from an accident involving the | ||
traveler that occurs during the planned trip; | ||
(B) insurance that provides coverage to a | ||
traveler for expenses incurred as a result of trip cancellation or | ||
interruption of a planned trip; | ||
(C) personal effects insurance that provides | ||
coverage to a traveler for loss of or damage to personal effects | ||
during the planned trip; | ||
(D) insurance that provides coverage for damage | ||
to accommodations or rental vehicles [ |
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(E) any other coverage the commissioner approves | ||
as meaningful and appropriate in connection with the transportation | ||
or accommodations arranged through a travel agency. | ||
(b) Travel insurance does not include major medical expense | ||
coverage for a traveler on a planned trip for six months or more, | ||
including: | ||
(1) an individual working abroad; | ||
(2) an expatriate; and | ||
(3) a military service member on deployment. | ||
SECTION 5. Subchapter D, Chapter 4055, Insurance Code, is | ||
amended by adding Sections 4055.154, 4055.155, 4055.156, and | ||
4055.157 to read as follows: | ||
Sec. 4055.154. TRAVEL INSURANCE GENERALLY. (a) A travel | ||
retailer, or the supervising entity, shall provide to a traveler | ||
seeking to purchase travel insurance: | ||
(1) a description of the material terms or the actual | ||
terms of the coverage; | ||
(2) a description of the claims filing process; | ||
(3) a description of the review and cancellation | ||
process for the insurance policy; and | ||
(4) the name and contact information for the insurer | ||
and the supervising entity. | ||
(b) Travel insurance coverage may be provided under an | ||
individual policy or a group or master policy. | ||
Sec. 4055.155. DUTIES OF INSURERS AND SUPERVISING ENTITIES. | ||
(a) A supervising entity designated by an insurer that provides | ||
travel insurance may authorize a travel retailer to offer and | ||
disseminate a travel insurance policy on behalf of the supervising | ||
entity by establishing a retailer registry. | ||
(b) The registry established under Subsection (a) must be | ||
maintained and updated on an ongoing basis in a form prescribed by | ||
the commissioner by rule. The registry must include the name, | ||
address, and contact information, and federal employer | ||
identification number, if any, of each registered travel retailer | ||
and an individual contact person at the retailer. | ||
(c) The registry must be submitted to the department on the | ||
request of the commissioner. | ||
(d) The supervising entity must certify in a form prescribed | ||
by the commissioner by rule that each registered travel retailer is | ||
in compliance with 18 U.S.C. Section 1033. | ||
(e) The supervising entity shall designate an individual | ||
licensed agent as the compliance officer responsible for compliance | ||
with insurance laws and rules related to travel insurance. | ||
(f) The compliance officer, the officers of the supervising | ||
entity, and any individual that directs or controls the travel | ||
insurance business of the supervising entity must submit | ||
fingerprints as required by the commissioner by rule. | ||
(g) The supervising entity shall provide travel insurance | ||
instruction and training to each employee of a registered travel | ||
retailer whose duties include offering and disseminating travel | ||
insurance. The instruction and training material are subject to | ||
review by the commissioner and must include instruction relating to | ||
the insurance offered, ethical sales practices, and required | ||
disclosures to travelers. | ||
(h) The supervising entity is responsible for the acts of a | ||
travel retailer and shall use reasonable means to ensure each | ||
registered retailer's compliance with this subchapter. | ||
Sec. 4055.156. DUTIES OF TRAVEL RETAILERS. (a) A travel | ||
retailer offering and disseminating travel insurance under this | ||
subchapter shall register with an insurer in a registry established | ||
under Section 4055.155. | ||
(b) The travel retailer shall make available to travelers | ||
brochures or other written materials that: | ||
(1) provide the name, address, and contact information | ||
of the authorized insurer and the supervising entity; | ||
(2) explain that the purchase of travel insurance is | ||
not required for the purchase from the travel retailer of any other | ||
product or service; and | ||
(3) disclose that the travel retailer is authorized to | ||
provide general information about travel insurance, including a | ||
description of coverage and the price for coverage, but is not | ||
qualified or authorized to provide answers to questions about | ||
specific policy terms or to evaluate the adequacy of the traveler's | ||
existing insurance coverage. | ||
(c) A travel retailer may not: | ||
(1) evaluate or interpret technical words or phrases | ||
used in a travel insurance policy or benefits under or terms of the | ||
policy; | ||
(2) evaluate or provide advice related to a traveler's | ||
existing insurance coverage; or | ||
(3) advertise or otherwise hold out the travel | ||
retailer as a license holder or an insurance expert. | ||
(d) A travel retailer that complies with this subchapter may | ||
receive compensation for offering and disseminating travel | ||
insurance on behalf of a supervising entity on or after the date the | ||
retailer registers with the insurer under this subchapter. | ||
Sec. 4055.157. ENFORCEMENT. A supervising entity and a | ||
travel retailer registered with the supervising entity are subject | ||
to Chapters 82 and 83 and Subtitle C, Title 5. | ||
SECTION 6. The commissioner of insurance shall promulgate | ||
forms described by Section 4055.155, Insurance Code, as added by | ||
this Act, as soon as practicable after the effective date of this | ||
Act, but not later than January 1, 2014. | ||
SECTION 7. This Act applies only to a travel insurance | ||
policy that is delivered, issued for delivery, or renewed on or | ||
after January 1, 2014. A policy delivered, issued for delivery, or | ||
renewed before January 1, 2014, is governed by the law as it existed | ||
immediately before the effective date of this Act, and that law is | ||
continued in effect for that purpose. | ||
SECTION 8. This Act takes effect September 1, 2013. |