1Providing for the licensure of limited lines travel insurance
2producers, for requirements for sale of travel insurance, for
3authority of limited lines travel insurance producers, for
4registration and training of travel retailers and for renewal
5of license.

6The General Assembly of the Commonwealth of Pennsylvania
7hereby enacts as follows:

8Section 1. Short title.

9This act shall be known and may be cited as the Travel
10Insurance Act.

11Section 2. Definitions.

12The following words and phrases when used in this act shall
13have the meanings given to them in this section unless the
14context clearly indicates otherwise:

15"Application." A form as defined in section 601-A of the act
16of May 17, 1921 (P.L.789, No.285), known as The Insurance
17Department Act of 1921.

18"Business entity." An entity. The term does not include an
19individual.

1"Commissioner." The Insurance Commissioner of the
2Commonwealth.

3"Customer." A person who purchases travel services or travel
4insurance.

5"Department." The Insurance Department of the Commonwealth.

6"Designated licensee." A licensed insurance producer as
7defined in section 601-A of the act of May 17, 1921 (P.L.789,
8No.285), known as The Insurance Department Act of 1921.

9"Enrolled customer." A customer who elects coverage under a
10travel insurance policy issued by a travel retailer.

11"Insurer." As defined in section 601-A of the act of May 17,
121921 (P.L.789, No.285), known as The Insurance Department Act of
131921.

14"Limited lines travel insurance producer." A person licensed
15to sell, solicit or negotiate contracts of travel insurance.

16"Location." A physical location in this Commonwealth or an
17Internet website, call center site or similar location provided
18to residents of this Commonwealth.

19"Offer and disseminate." Providing general information,
20including a description of the coverage and price, as well as
21processing an application for travel insurance, collecting
22premiums and performing other activities for which no insurance
23license is required.

24"Travel insurance." Insurance providing coverage for
25personal risks incident to planned travel.

26(1) The term includes:

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

28(ii) Loss of baggage or personal effects.

29(iii) Damages to accommodations or rental vehicles.

30(iv) Sickness, accident, disability or death

1occurring during travel.

2(2) The term does not include:

3(i) A service contract as defined in section 358(b)
4of the act of May 17, 1921 (P.L.682, No.284), known as
5The Insurance Company Law of 1921.

6(ii) Major medical plans that provide comprehensive
7medical protection to a traveler with a trip lasting six
8months or longer, including a person working overseas as
9an expatriate or deployed military personnel.

10"Travel retailer." A business entity that makes, arranges or
11offers travel services and may offer and disseminate travel
12insurance as a service to its customer on behalf of and under
13the direction of a travel insurance producer or under its own
14license.

15"Travel insurance transaction." The sale of travel insurance
16to a customer.

17Section 3. Licensure of limited lines travel insurance
18producers.

19(a) Requirement.--A limited lines travel insurance producer
20is required to hold a limited lines travel insurance license to
21sell, solicit or negotiate coverage under a policy of travel
22insurance.

23(b) Limited lines license.--A limited lines license issued
24under this act shall authorize a travel retailer registered
25under the license of the limited lines insurance producer, and
26each employee or authorized representative of the travel
27retailer, to offer and disseminate coverage under a policy of
28travel insurance to a customer at each location where the travel
29retailer or authorized representative engages in travel
30insurance transactions and to receive compensation from the

1limited lines travel insurance producer for those activities.

2(c) License.--Notwithstanding any other provision of law, a
3license issued under this section shall authorize the licensee,
4a travel retailer registered under the licensee's license and an
5employee or authorized representative of the travel retailer to
6engage in activities permitted in this section.

7Section 4. Requirements for sale of travel insurance.

8(a) Authority and licensure.--A travel retailer and each
9employee and authorized representative of the travel retailer
10may offer and disseminate travel insurance to customers and
11shall not be subject to licensure as an insurance producer under
12Article VI-A of the act of May 17, 1921 (P.L. 789, No. 285),
13known as The Insurance Department Act of 1921, provided that:

14(1) The limited lines travel insurance producer obtains
15a limited lines license.

16(2) The limited lines travel insurance producer or
17travel retailer provides to each purchaser of travel
18insurance:

19(i) A description of the material terms or actual
20material terms of the insurance coverage.

21(ii) A description of the process for filing a
22claim.

23(iii) A description of the review or cancellation
24process for the travel insurance policy.

25(iv) The identity and contact information of the
26travel retailer, insurer and limited lines travel
27insurance producer.

28(b) Register of travel retailers.--

29(1) At the time of licensure, the limited lines travel
30insurance producer shall establish and maintain a register of

1each travel retailer in this Commonwealth where travel
2insurance is offered on the limited lines travel insurance
3producer's behalf.

4(2) The register shall be maintained and updated
5annually by the limited lines travel insurance producer and
6shall include:

7(i) The name, address and contact information of the
8travel retailer.

9(ii) The name of the officer or person who directs
10or controls the travel retailer's operations.

11(iii) The travel retailer's Federal Tax
12Identification Number.

13(3) The limited lines travel insurance producer shall
14submit the register to the department upon request.

15(4) The limited lines travel insurance producer shall
16also certify that the travel retailer registered complies
17with 18 U.S.C. § 1033 (relating to crimes by or affecting
18persons engaged in the business of insurance whose activities
19affect interstate commerce).

20(c) Training.--The insurer issuing the travel insurance must
21either directly supervise or authorize a designated licensee to
22supervise the administration of a training program, including
23the development of the program, for employees and authorized
24representatives of the travel retailer which may be subject to
25review by the department. The training shall comply with the
26following:

27(1) The training shall be delivered to employees and
28authorized representatives of a travel retailer who are
29directly engaged in the activity of selling, soliciting or
30negotiating travel insurance.

1(2) The training may be provided in electronic form. If
2conducted in an electronic form, the insurer shall implement
3a supplemental education program regarding travel insurance
4that is conducted and overseen by the designated licensee.

5(3) Each employee and authorized representative, at a
6minimum, shall receive basic instruction about the types of
7travel insurance offered, ethical sales practices and the
8disclosures required under this section.

9(d) List of trained employees and authorized
10representatives.--The travel retailer shall maintain a list of
11all employees and authorized representatives trained under the
12requirements of this section. The travel retailer shall submit
13the list to the department or the limited lines travel insurance
14producer upon request. The list shall be maintained and updated
15annually and shall include:

16(1) The date the training was completed.

17(2) The employee's and authorized representative's start
18and end date of employment.

19(3) The employee's and authorized representative's
20contact information.

21(e) Written materials.--A travel retailer offering or
22disseminating travel insurance shall make available at every
23location where travel insurance is offered brochures or other
24written material that:

25(1) Provides the identity and contact information of the
26insurer and the limited lines travel insurance agent.

27(2) Discloses that travel insurance may provide a
28duplication of coverage already provided.

29(3) Explains that purchase of travel insurance is not
30required in order to purchase any other product or service

1from the travel retailer.

2(4) Explains that an unlicensed travel retailer is
3permitted to provide general information about the insurance
4offered by the travel retailer, including a description of
5the coverage and price, but is not qualified or authorized to
6answer technical questions about the terms and conditions of
7insurance coverage.

8(f) Limitations.--A travel retailer's employee or authorized
9representative who is not licensed as a designated licensee may
10not:

11(1) Evaluate or interpret the technical terms, benefits,
12and conditions of the offered travel insurance coverage.

13(2) Evaluate or provide advice concerning a prospective
14purchaser's existing insurance coverage.

15(3) Advertise, represent or otherwise hold himself out
16as a licensed insurer, designated licensee or insurance
17expert.

18(g) Charges.--The charges for travel insurance coverage may
19be billed and collected by the travel retailer. A charge to the
20enrolled customer for coverage that is not included in the cost
21associated with the purchase of travel services shall be
22separately itemized on the enrolled customer's bill. If the
23travel insurance coverage is included with the purchase of
24travel services, the travel retailer shall clearly and
25conspicuously disclose to the enrolled customer that the travel
26insurance coverage is included with the purchase of travel
27services. Travel retailer billing and collecting the charges
28shall not be required to maintain the funds in a segregated
29account provided that the travel retailer is authorized by the
30insurer to hold the funds in an alternative manner and remits

1the amounts to the supervising entity within 60 days of receipt.
2The funds received by a travel retailer from an enrolled
3customer for the sale of travel insurance shall be considered
4funds held in trust by the travel retailer in a fiduciary
5capacity for the benefit of the insurer.

6(h) Compensation.--A travel retailer, whose insurance-
7related activities and those of the employee or authorized
8representative are limited to offering and disseminating travel
9insurance on behalf or under the direction of a limited lines
10travel insurance producer meeting the conditions stated in this
11act is authorized to conduct an activity and receive related
12compensation upon registration and training required under this
13section. A travel retailer may receive compensation from the
14insurer for billing and collection services.

15Section 5. Policy.

16(a) Offering.--Travel insurance may be offered under an
17individual policy or under a group policy.

18(b) Eligibility and underwriting standards.--Eligibility and
19underwriting standards for customers electing to enroll in
20coverage shall be established for each travel insurance program.

21Section 6. Responsibility.

22As the insurer designee, the limited lines travel insurance
23producer and insurer are responsible for the acts of the travel
24retailer who is not a limited lines travel insurance producer
25and shall use reasonable means to ensure compliance by the
26travel retailer with this act.

27Section 7. Enforcement.

28(a) Violation.--A violation of this act shall constitute a
29violation of Article VI-A and the act of May 17, 1921 (P.L. 789,
30No. 285), known as The Insurance Department Act of 1921, and

1shall be punishable under section 691-A of that act.

2(b) Grading.--A person who violates any provision of this
3act commits a misdemeanor of the third degree.

4Section 8. Licensing.

5An application for licensure under this act shall be in
6accordance with section 606-A of the Act of May 17, 192 (P.L.
7789, No. 285), known as The Insurance Department Act of 1921.

8Section 9. Renewal of license.

9A license may be renewed in accordance with section 608-A of
10the Act of May 17, 1921 (P.L. 789, No. 285), known as The
11Insurance Department Act of 1921.

12Section 10. Effective date.

13This act shall take effect in 120 days.