Sec 20-333. Limited lines travel insurance producer business entity license; requirements; travel retailers; definitions

A. Notwithstanding any other provision of this title, a travel retailer may offer and issue travel insurance under a limited lines travel insurance producer business entity license under the following conditions:

1. The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance all of the following:

(a) A description of the material terms or the actual material terms of the insurance coverage.

(b) A description of the process for filing a claim.

(c) A description of the review or cancellation process for the travel insurance policy.

(d) The identity and contact information of the insurer and limited lines travel insurance producer.

2. At the time of licensure, the limited lines travel insurance producer establishes and maintains a register, on a form prescribed by the director, of each travel retailer that offers travel insurance on the limited lines travel insurance producer's behalf. The limited lines travel insurance producer shall maintain and annually update the register, which shall include the name, address and contact information of the travel retailer and an officer or person who directs or controls the travel retailer's operations, and the travel retailer's federal tax identification number. The limited lines travel insurance producer shall submit the register to the department within thirty days after a request. The limited lines travel insurance producer shall also certify to the department that the registered travel retailer is not in violation of 18 United States Code section 1033.

3. The limited lines travel insurance producer designates one of the producer's employees who is a licensed individual producer as the person responsible for the limited lines travel insurance producer's compliance with the travel insurance laws and rules of this state.

4. The licensed individual producer designated under paragraph 3 of this subsection complies with the fingerprinting requirements applicable to insurance producers in the resident state of the limited lines travel insurance producer.

5. The limited lines travel insurance producer pays all applicable insurance producer licensing fees required under this title.

6. The limited lines travel insurance producer requires each employee or authorized representative of the travel retailer whose duties include offering and disseminating travel insurance to receive a training or an instruction program, which may be subject to review by the director. The training material, at a minimum, shall contain instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective customers.

B. Limited lines travel insurance producers and those registered under the producer's license are exempt from the examination requirements under this chapter and the continuing education requirements under chapter 18 of this title.

C. Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that:

1. Provide the identity and contact information of the insurer and the limited lines travel insurance producer.

2. Explain that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer.

3. Explain that an unlicensed travel retailer is permitted to provide general information about the insurance offered by the travel retailer, including a description of the coverage and price, but is not qualified or authorized to answer technical questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the adequacy of the customer's existing insurance coverage.

D. A travel retailer's employee or authorized representative who is not licensed as an insurance producer may not do any of the following:

1. Evaluate or interpret the technical terms, benefits and conditions of the offered travel insurance coverage.

2. Evaluate or provide advice concerning a prospective purchaser's existing insurance coverage.

3. Hold himself out as a licensed insurer, licensed producer or insurance expert.

E. A travel retailer whose insurance-related activities, and those of the retailer's employees and authorized representatives, are limited to offering and disseminating travel insurance under the limitations of this section may receive related compensation on registration by the limited lines travel insurance producer pursuant to subsection A, paragraph 2 of this section.

F. Travel insurance may be provided under an individual policy or under a group or master policy.

G. As the insurer designee, the limited lines travel insurance producer is responsible for the acts of the travel retailer and shall use reasonable means to ensure compliance by the travel retailer with the requirements of this section.

H. To the extent not inconsistent with this article, section 20-281, section 20-286, subsections B, C and D, sections 20-289 and 20-289.01, section 20-290, subsection A and sections 20-291, 20-292, 20-295, 20-296, 20-297, 20-298, 20-299, 20-301 and 20-302 apply to a limited lines travel insurance producer and any travel retailer offering and disseminating travel insurance under the limited lines travel insurance producer business entity license.

I. For the purposes of this section:

1. "Limited lines travel insurance producer" means a business entity that is either:

(a) A managing general agent.

(b) A licensed insurance producer, including a limited lines producer, designated by an insurer as the travel insurance supervising entity.

2. "Offer and disseminate" means providing general information, including a description of the coverage and price, as well as processing the application, collecting premiums and performing other nonlicensable activities permitted by the department.

3. "Travel insurance":

(a) Means insurance coverage for personal risks incident to planned travel, including:

(i) Interruption or cancellation of a trip or event.

(ii) Loss of baggage or personal effects.

(iii) Damages to accommodations or rental vehicles.

(iv) Sickness, accident, disability or death occurring during travel.

(b) Does not include major medical plans, which provide comprehensive medical protection for travelers with trips lasting six months or longer, including those working overseas as expatriates or military personnel being deployed.

4. "Travel retailer" means a business entity that makes, arranges or offers travel services and that may offer and disseminate travel insurance as a service to its customers on behalf of and under the direction of a limited lines travel insurance producer.