A. The Insurance Commissioner may issue a limited lines travel insurance producer license to an individual or business entity that has filed with the Commissioner an application for such license in a form and manner prescribed by the Commissioner. The limited lines travel insurance producer shall be licensed to sell, solicit or negotiate travel insurance through a licensed insurer. No person may act as a limited lines travel insurance producer or travel insurance retailer unless properly licensed or registered, respectively.
B. A travel retailer may offer and disseminate travel insurance under a limited lines travel insurance producer business entity license only if:
1. The limited lines travel insurance producer or travel retailer provides to purchasers of travel insurance:
2. At the time of licensure, the limited lines travel insurance producer shall establish and maintain a register on a form prescribed by the Commissioner of each travel retailer that offers travel insurance on behalf of the limited lines travel insurance. 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 operations of the travel retailer and the federal tax identification number of the travel retailer. The limited lines travel insurance producer shall submit the register to the Insurance Department upon reasonable request. The limited lines travel insurance producer shall also certify that the registered travel retailer complies with 18 U.S.C., Section 1033. The grounds for the suspension, revocation and the penalties applicable to resident insurance producers, pursuant to Section 1435.13 of this title, shall be applicable to the limited lines travel insurance producers and travel retailers;
3. The limited lines travel insurance producer has designated one of its employees, a designated responsible producer, who is a licensed individual producer as the person responsible for the compliance with the travel insurance laws and regulations applicable to the limited lines travel insurance producer and its registrants;
4. The designated responsible producer, president, secretary, treasurer and any other officer or person who directs or controls the limited lines travel insurance producer’s insurance operations comply 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 has paid all applicable insurance producer licensing fees as set forth in Section 1435.23 of this title; and
6. The limited lines travel insurance 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 is subject to the discretion of the Commissioner to review and approve. The training material shall, at a minimum, contain adequate instructions on the types of insurance offered, ethical sales practices and required disclosures to prospective customers.
C. Any travel retailer offering or disseminating travel insurance shall make available to prospective purchasers brochures or other written materials that have been approved by the travel insurer. Such materials shall include information which, at a minimum:
1. Provides the identity and contact information of the insurer and the limited lines travel insurance producer;
2. Explains that the purchase of travel insurance is not required in order to purchase any other product or service from the travel retailer; and
3. Explains that an unlicensed travel retailer is permitted to provide only 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 employee or authorized representative who is not licensed as an insurance producer may not:
1. Evaluate or interpret the technical terms, benefits and conditions of the offered travel insurance coverage;
2. Evaluate or provide advice concerning existing insurance coverage for a prospective purchaser; or
3. Hold himself, herself or itself out as a licensed insurer, licensed producer or insurance expert.
E. Notwithstanding any other provision in law, a travel retailer whose insurance-related activities, and those of its employees and authorized representatives, 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 the Travel Insurance Act, is authorized to receive related compensation, upon registration by the limited lines travel insurance producer as described in paragraph 2 of subsection B of this section.
F. 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 Travel Insurance Act.
G. Any person licensed as an insurance producer with a line of authority set forth in paragraphs 1 through 4, 6 and 7 of subsection A of Section 1435.8 of this title is authorized to sell, solicit and negotiate travel insurance. The producer is not required to be appointed by an insurer in order to sell, solicit or negotiate the travel insurance.
Added by Laws 2018, c. 159, § 5, eff. Nov. 1, 2018. Amended by Laws 2021, c. 84, § 3, eff. Nov. 1, 2021.