2013 -- S 0376 SUBSTITUTE A
A N A C T
RELATING TO INSURANCE
Introduced By: Senators Bates, Picard, and Walaska
Date Introduced: February 13, 2013
It is enacted by the General Assembly as follows:
SECTION 1. Title 27 of the General Laws entitled "INSURANCE" is hereby amended
by adding thereto the following chapter:
LIMITED LINES TRAVEL INSURANCE ACT
27-79-1. Short title. -- This act shall be known and may be cited as the "Limited Lines
Travel Insurance Model Act."
27-79-2. Definitions. -- As used in this chapter, the following terms shall mean:
(1) "Limited Lines Travel Insurance Producer" means a licensed insurance producer
designated by an insurer as the travel insurance supervising producer as set forth in section 27-77-
(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 non-licensable activities permitted by the state.
(3) "Travel Insurance" means insurance coverage for personal risks incident to planned
travel, including but not limited to:
(i) Interruption or cancellation of trip or event;
(ii) Loss of baggage or personal effects;
(iii) Damages to accommodations or rental vehicles; or
(iv) Sickness, accident, disability or death occurring during travel.
Travel insurance does not include major medical plans, which provide comprehensive
medical protection for travelers with trips lasting six (6) months or longer, including for example,
those working overseas as an ex-patriot or military personnel being deployed.
(4) "Travel Retailer" means a business entity that makes, arranges or offers travel
services and 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.
27-79-3. Requirements. -- (a) A travel retailer may offer and disseminate travel
insurance only if the limited lines travel insurance producer complies with the following:
(1) The limited lines travel insurance producer or travel retailer provides to purchasers of
(i) A description of the material terms or the actual material terms of the insurance
(ii) A description of the process for filing a claim;
(iii) A description of the review or cancellation process for the travel insurance policy;
(iv) The identity and contact information of the insurer and limited lines travel insurance
(2) At the time of licensure, the limited lines travel insurance producer shall establish and
maintain a register of each travel retailer that offers travel insurance on the limited lines travel
insurance producer's behalf. The register shall be maintained and updated by the limited lines
travel insurance producer and 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 employment identification number. The limited lines travel insurance
producer shall submit such register to the state insurance department upon reasonable request.
The limited lines travel insurance producer shall also certify that the travel retailer registered
complies with applicable federal law.
(3) The limited lines travel insurance producer is responsible for compliance with the
travel insurance laws, rules and regulations of the state.
(4) The limited lines travel insurance producer has paid all applicable insurance producer
(5) The limited lines travel insurance producer requires each employee 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 commissioner. The training
material shall, at a minimum, contain instructions on the types of insurance offered, ethical sales
practices, and required disclosures to prospective customers.
(b) 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
(2) Explain that the purchase of travel insurance is not required in order to purchase any
other product or service from the travel retailer; and
(3) Explain that an unlicensed travel retailer is permitted to provide general information
about the insurance offered by the travel insurance producer or insurer, 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.
(c) A travel retailer who is not licensed as an insurance producer may not:
(1) Evaluate or interpret the technical terms, benefits, and conditions of the offered travel
(2) Evaluate or provide advice concerning a prospective purchaser's existing insurance
(3) Hold himself/herself or itself out as a licensed insurer, licensed producer, or insurance
27-79-4. Compensation. -- A travel retailer whose insurance-related activities, and those
of its employees, are limited to offering and disseminating travel insurance on behalf of and under
the direction of a limited lines travel insurance producer meeting the conditions stated in this
chapter, is authorized to do so and receive related compensation.
27-79-5. Policy. -- Travel insurance may be provided under an individual policy or under
a group or master policy.
27-79-6. Responsibility. -- 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 this chapter.
27-79-7. Enforcement. -- The limited lines travel insurance producer and any travel
retailer offering and disseminating travel insurance under the limited lines travel insurance
producer license shall be subject to the penalties for violations of this chapter pursuant to section
SECTION 2. This act shall take effect ninety (90) days after enactment.