PRINTER'S NO. 1121
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
943
Session of
2023
INTRODUCED BY PHILLIPS-HILL AND SCHWANK, SEPTEMBER 28, 2023
REFERRED TO BANKING AND INSURANCE, SEPTEMBER 28, 2023
AN ACT
Amending the act of May 31, 2018 (P.L.125, No.26), entitled "An
act providing for the licensure of limited lines travel
insurance producers, for requirements for sale of travel
insurance, for authority of limited lines travel insurance
producers, for registration and training of travel retailers
and for renewal of license," providing for scope and purpose;
further providing for definitions, for licensure of limited
lines travel insurance producers, for requirements for sale
of travel insurance and for policy; and providing for travel
protection plans, for sales practices, for travel
administrators, for filing classification and for
regulations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The act of May 31, 2018 (P.L.125, No.26), known
as the Travel Insurance Modernization Act, is amended by adding
a section to read:
Section 1.1. Scope and purpose.
(a) Purpose.--The purpose of this act is to promote the
public welfare by creating a comprehensive legal framework
within which travel insurance may be sold in this Commonwealth.
(b) Applicability.--The requirements of this act shall apply
to travel insurance that covers a resident of this Commonwealth
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and is sold, solicited, negotiated or offered in this
Commonwealth, and policies and certificates are delivered or
issued for delivery in this Commonwealth. This act shall not
apply to cancellation fee waivers or travel assistance services,
except as expressly provided in this act.
(c) Continuation.--All other applicable provisions of this
Commonwealth's insurance laws shall continue to apply to travel
insurance except that the specific provisions of this act shall
supersede any general provisions of law that would otherwise be
applicable to travel insurance.
Section 2. The definitions of "customer," "limited lines
travel insurance producer" and "travel insurance" in section 2
of the act are amended and the section is amended by adding
definitions to read:
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Aggregator site." A publicly accessible Internet website
that provides access to information regarding insurance products
from more than one insurer, including product and insurer
information, for use in comparison shopping.
* * *
"Blanket travel insurance." A policy of travel insurance
issued to an eligible group providing coverage for specific
classes of persons defined in the policy with coverage provided
to all members of the eligible group without a separate charge
to individual members of the eligible group.
* * *
"Cancellation fee waiver." A contractual agreement between a
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supplier of travel services and a customer to waive some or all
of the nonrefundable cancellation fee provisions of the
supplier's underlying travel contract with or without regard to
the reason for the cancellation or form of reimbursement. A
cancellation fee waiver is not insurance.
* * *
"Customer." A person who purchases travel services, travel
protection plans or travel insurance.
* * *
"Eligible group." Two or more persons who are engaged in a
common enterprise or have an economic, educational or social
affinity or relationship, including any of the following:
(1) An entity engaged in the business of providing
travel or travel services, including tour operators, lodging
providers, vacation property owners, hotels and resorts,
travel clubs, travel agencies, property managers, cultural
exchange programs and common carriers or the operator, owner
or lessor of a means of transportation of passengers,
including airlines, cruise lines, railroads, steamship
companies and public bus carriers, wherein with regard to a
particular trip or type of travel or travelers, all members
or customers of the group must have a common exposure to risk
attendant to the travel.
(2) A college, school or other institution of learning,
covering students, teachers, employees or volunteers.
(3) An employer covering a group of employees,
volunteers, contractors, board of directors, dependents or
guests.
(4) A sports team, camp or sponsor of a sports team or
camp covering participants, members, campers, employees,
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officials, supervisors or volunteers.
(5) A religious, charitable, recreational, educational
or civic organization or branch of an organization covering a
group of members, participants or volunteers.
(6) A financial institution or financial institution
vendor or parent holding company, trustee or agent of or
designated by one or more financial institutions or financial
institution vendors, including account holders, credit card
holders, debtors, guarantors or purchasers.
(7) An incorporated or unincorporated association,
including labor unions, having a common interest,
constitution and bylaws, and organized and maintained in good
faith for purposes other than obtaining insurance for members
or participants of the association covering members.
(8) A trust or the trustees of a fund established,
created or maintained for the benefit of and covering
members, employees or customers, subject to the
commissioner's permitting the use of a trust of one or more
associations meeting the requirements of paragraph (7).
(9) An entertainment production company covering a group
of participants, volunteers, audience members, contestants or
workers.
(10) A volunteer fire department, ambulance, rescue,
police, court, first aid, civil defense or other volunteer
group.
(11) A preschool, day-care institution for children or
adults and senior citizen club.
(12) An automobile or truck rental or leasing company
covering a group of individuals who may become renters,
lessees or passengers defined by their travel status on the
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rented or leased vehicles. The common carrier, operator,
owner or lessor of a means of transportation, or the
automobile or truck rental or leasing company, is the
policyholder under a policy to which this section applies.
(13) Any other group where, upon prior request to the
commissioner, the commissioner has determined, in the
commissioner's sole discretion, that the members are engaged
in a common enterprise, or have an economic, educational or
social affinity or relationship, and that issuance of the
policy would not be contrary to the public interest.
* * *
"Fulfillment materials." Documentation sent to the purchaser
of a travel protection plan confirming the purchase and
providing the travel protection plan's coverage and assistance
details.
"Group travel insurance." Travel insurance issued to an
eligible group.
* * *
"Limited lines travel insurance producer." A person licensed
to sell, solicit or negotiate a contract of travel insurance[.]
as one of the following:
(1) licensed managing general agent or third-party
administrator;
(2) licensed insurance producer, including a limited
lines producer; or
(3) travel administrator licensed as a limited lines
insurance producer.
* * *
"Travel administrator." A person who directly or indirectly
underwrites, collects charges, collateral or premiums from, or
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adjusts or settles claims on residents of this Commonwealth, in
connection with travel insurance, except that a person shall not
be considered a travel administrator if that person's only
actions that would otherwise cause the person to be considered a
travel administrator are among the following:
(1) A person working for a travel administrator to the
extent that the person's activities are subject to the
supervision and control of the travel administrator.
(2) An insurance producer selling insurance or engaged
in administrative and claims-related activities within the
scope of the producer's license.
(3) A travel retailer offering and disseminating travel
insurance and registered under the license of a limited lines
travel insurance producer in accordance with this act.
(4) An individual adjusting or settling claims in the
normal course of that individual's practice or employment as
an attorney-at-law and who does not collect charges or
premiums in connection with insurance coverage.
(5) A business entity that is affiliated with a licensed
insurer while acting as a travel administrator for the direct
and assumed insurance business of an affiliated insurer.
"Travel assistance services." Noninsurance services for
which the consumer is not indemnified based on a fortuitous
event and where providing the service does not result in
transfer or shifting of risk that would constitute the business
of insurance. The term includes security advisories, destination
information, vaccination and immunization information services,
travel reservation services, entertainment, activity and event
planning, translation assistance, emergency messaging,
international legal and medical referrals, medical case
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monitoring, coordination of transportation arrangements,
emergency cash transfer assistance, medical prescription
replacement assistance, passport and travel document replacement
assistance, lost luggage assistance, concierge services and any
other service that is furnished in connection with planned
travel. Travel assistance services are not insurance and not
related to insurance.
"Travel insurance." Insurance providing coverage for
personal risks incident to planned travel. The following apply:
(1) The term includes:
(i) Interruption or cancellation of 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.
(v) Emergency evacuation.
(vi) Repatriation of remains.
(vii) Any other contractual obligations to indemnify
or pay a specified amount to the traveler upon
determinable contingencies related to travel as approved
by the commissioner.
(2) The term does not include:
(i) A service contract as defined in section 358(b)
of the act of May 17, 1921 (P.L.682, No.284), known as
The Insurance Company Law of 1921.
(ii) A major medical plan that provides
comprehensive medical protection to a traveler with a
trip lasting six months or longer, including a person
working or residing overseas as an expatriate or deployed
military personnel.
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(iii) Any other product that requires a specific
insurance producer license.
* * *
"Travel protection plans." Plans that provide one or more of
the following:
(1) Travel insurance.
(2) Travel assistance services.
(3) Cancellation fee waivers.
* * *
Section 3. Section 3(a) of the act is amended to read:
Section 3. Licensure of limited lines travel insurance
producers.
(a) Requirement.--[A limited lines travel insurance producer
is required to hold a limited lines travel insurance license to
sell, solicit or negotiate coverage under a policy of travel
insurance.] The 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 a
limited lines travel insurance producer 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. A person
may not act as a limited lines travel insurance producer or
travel insurance retailer unless properly licensed or
registered.
* * *
Section 4. Section 4(a)(1), (b), (e) introductory paragraph
and (2) and (f) of the act are amended and the section is
amended by adding a subsection to read:
Section 4. Requirements for sale of travel insurance.
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(a) Authority and licensure.--A travel retailer and each
employee and authorized representative of the travel retailer
may offer and disseminate travel insurance to customers and
shall not be subject to licensure as an insurance producer under
Article VI-A of the Insurance Department Act if:
(1) The limited lines travel insurance producer obtains
a limited lines license or is otherwise licensed as an
insurance producer.
* * *
(b) Register of travel retailers.--
(1) At the time of licensure, the limited lines travel
insurance producer shall establish and maintain a register of
each travel retailer in this Commonwealth [where travel
insurance is offered] that offers travel insurance on the
limited lines travel insurance producer's behalf.
(2) The register shall be maintained and updated
[annually] by the limited lines travel insurance producer and
shall include:
(i) The name, address and contact information of the
travel retailer.
(ii) The name, address and contact information of
the officer or person who directs or controls the travel
retailer's operations.
(iii) The travel retailer's Federal Tax
Identification Number.
(3) Information in the register regarding each travel
retailer under paragraphs (1) and (2) shall be maintained for
a period of at least three years following the date that the
information was entered into the register.
(4) The limited lines travel insurance producer shall
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submit the register to the department upon request.
(5) The limited lines travel insurance producer shall
certify that the travel retailer registered complies with 18
U.S.C. § 1033 (relating to crimes by or affecting persons
engaged in the business of insurance whose activities affect
interstate commerce).
(6) The grounds for suspension, revocation and the
penalties under section 7 shall be applicable to the limited
lines travel insurance producers and travel retailers.
(7) The limited lines travel insurance producer shall
designate one employee as a licensed individual producer as
the designated licensee responsible for the compliance with
the travel insurance laws and regulations applicable to the
limited lines travel insurance producer and the producer's
registrants.
(8) The designated licensee, president, secretary,
treasurer and any other officer or person who directs or
controls the limited lines travel insurance producer's
insurance operations shall comply with the fingerprinting
requirements applicable to insurance producers in the
resident state of the limited lines travel insurance
producer.
(9) The limited lines travel insurance producer shall
pay all applicable licensing fees as specified in applicable
State law.
* * *
(e) Written materials.--A travel retailer offering or
disseminating travel insurance shall provide to every
prospective customer a brochure or other written material that
has been approved by the travel insurer. The materials shall
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include information that:
* * *
[(2) Discloses that travel insurance may provide a
duplication of coverage already provided under insurance
policies that the producer already maintains.]
* * *
(f) Limitations.--A travel retailer's employee or authorized
representative who is not licensed as [a designated licensee] 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 a prospective
customer's existing insurance coverage.
(3) Advertise, represent or otherwise hold himself or
herself out as a licensed insurer, [designated licensee]
licensed producer or insurance expert.
* * *
(i) Authorization for sales.--A person licensed in a major
line of authority as an insurance producer is authorized to
sell, solicit and negotiate travel insurance. A property and
casualty insurance producer is not required to become appointed
by an insurer in order to sell, solicit or negotiate travel
insurance.
Section 5. Section 5 of the act is amended to read:
Section 5. Policy.
(a) Offering.--Travel insurance may be offered under an
individual [policy or under a group] , group or blanket policy.
(b) Eligibility and underwriting standards.--Eligibility and
underwriting standards for [customers electing to enroll in
coverage shall be established for each travel insurance
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program.] travel insurance may be developed and provided based
on travel protection plans designed for individual or identified
marketing or distribution channels, provided those standards
also meet the Commonwealth's underwriting standards for inland
marine.
Section 6. The act is amended by adding sections to read:
Section 8.1. Travel protection plans.
Travel protection plans may be offered for one price for the
combined features that the travel protection plan offers in this
Commonwealth if:
(1) The travel protection plan clearly discloses to the
consumer, at or prior to the time of purchase, that the plan
includes travel insurance, travel assistance services and
cancellation fee waivers as applicable, and provides
information and an opportunity, at or prior to the time of
purchase, for the consumer to obtain additional information
regarding the features and separately itemized pricing of
each.
(2) The fulfillment materials:
(i) Describe and delineate the travel insurance,
travel assistance services and cancellation fee waivers
in the travel protection plan.
(ii) Include the travel insurance disclosures and
the contact information for persons providing travel
assistance services and cancellation fee waivers, as
applicable.
(3) Partial payment made for travel protection plans,
including one or more services offered for one price, will be
applied in full to the travel insurance premium portion of
the price first.
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Section 8.2. Sales practices.
(a) General rule.--A person offering travel insurance to
residents of this Commonwealth shall be subject to the act of
July 22, 1974 (P.L.589, No.205), known as the Unfair Insurance
Practices Act, except as otherwise provided in this section. In
the event of a conflict between this act and other provisions of
the Unfair Insurance Practices Act regarding the sale and
marketing of travel insurance and travel protection plans, the
provisions of this act shall control.
(b) Illusory travel insurance.--Offering or selling a travel
insurance policy that could never result in payment of any
claims for any insured under the policy is deemed and defined to
be an unfair trade practice under the Unfair Insurance Practices
Act.
(c) Marketing.--
(1) All documents provided to a consumer prior to the
purchase of travel insurance, including sales materials,
advertising materials and marketing materials, shall be
consistent with the travel insurance policy product,
including forms, endorsements, policies, rate filings and
certificates of insurance.
(2) For travel insurance policies or certificates that
contain preexisting condition exclusions, information and an
opportunity to learn more about the preexisting condition
exclusions shall be provided any time prior to the time of
purchase and in the coverage's fulfillment materials.
(3) The fulfillment materials and the information
described in section 4(a)(2) shall be provided to a
policyholder or certificate holder as soon as practicable,
following the purchase of a travel protection plan. Unless
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the insured has either started a covered trip or filed a
claim under the travel insurance coverage, a policyholder or
certificate holder may cancel a policy or certificate for a
full refund of the travel protection plan price from the date
of purchase of a travel protection plan until at least:
(i) fifteen days following the date of delivery of
the travel protection plan's fulfillment materials by
postal mail; or
(ii) ten days following the date of delivery of the
travel protection plan's fulfillment materials by means
other than postal mail.
(4) The company shall disclose in the policy
documentation and fulfillment materials whether the travel
insurance is primary or secondary to other applicable
coverage.
(5) Where travel insurance is marketed directly to a
consumer through an insurer's publicly accessible Internet
website or by others through an aggregator site, it shall not
be an unfair trade practice or other violation of law where
an accurate summary or short description of coverage is
provided on the website, as long as the consumer has access
to the full provisions of the policy through electronic
means.
(d) Opt out prohibited.--No person offering, soliciting or
negotiating travel insurance or travel protection plans on an
individual or group basis may do so by using a negative option
or opt out, which would require a consumer to take an
affirmative action to deselect coverage, such as unchecking a
box on an electronic form, when the consumer purchases a trip.
(e) Unfair trade practice.--It shall be deemed and defined
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to be an unfair trade practice to market blanket travel
insurance coverage as free.
(f) Coverage options.--If a consumer's destination
jurisdiction requires insurance coverage, it shall not be an
unfair trade practice to require that a consumer choose between
the following options as a condition of purchasing a trip or
travel package:
(1) purchasing the coverage required by the destination
jurisdiction through the travel retailer or limited lines
travel insurance producer supplying the trip or travel
package; or
(2) agreeing to obtain and provide proof of coverage
that meets the destination jurisdiction's requirements prior
to departure.
(g) Definition.--As used in this section, the term
"delivery" means handing fulfillment materials to the
policyholder or certificate holder or sending fulfillment
materials by postal mail or electronic means to the policyholder
or certificate holder.
Section 8.3. Travel administrators.
(a) Notwithstanding any other provisions of this act, a
person may not act or represent oneself as a travel
administrator for travel insurance in this Commonwealth unless
that person:
(1) is a licensed property and casualty insurance
producer in this Commonwealth for activities permitted under
that producer license;
(2) holds a valid managing general agent license in this
Commonwealth; or
(3) holds a valid third-party administrator license in
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this Commonwealth.
(b) Responsibilities of insurer.--An insurer is responsible
for the acts of a travel administrator administering travel
insurance underwritten by the insurer and is responsible for
ensuring that the travel administrator maintains all books and
records relevant to the insurer to be made available by the
travel administrator to the commissioner upon request.
Section 8.4. Filing classification.
Notwithstanding any other provision of this act, travel
insurance shall be classified and filed for purposes of rates
and forms under an inland marine line of insurance. A policy
providing coverage for only sickness, accident, disability or
death occurring during travel, either exclusively, or in
conjunction with related coverages of emergency evacuation or
repatriation of remains, shall be considered and filed as
accident and health insurance and will not be subject to the
inland marine underwriting standards.
Section 8.5. Regulations.
The commissioner may promulgate regulations to implement the
provisions of this act.
Section 7. This act shall take effect in 90 days.
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