H.F. _____ Section 1. NEW SECTION . 515K.1 Short title. 1 This chapter shall be known and may be cited as the “Travel 2 Insurance Model Act” . 3 Sec. 2. NEW SECTION . 515K.2 Definitions. 4 As used in this chapter, unless the context otherwise 5 requires: 6 1. “Aggregator site” means an internet site that provides 7 access to information regarding insurance products, including 8 product and insurer information, that is obtained from more 9 than one insurer for use by consumers in comparison shopping. 10 2. “Blanket travel insurance” means a policy of travel 11 insurance issued to any eligible group that provides coverage 12 for specific classes of persons as defined in the policy, with 13 coverage provided to all members of the eligible group without 14 a separate charge to individual members of the eligible group. 15 3. “Cancellation fee waiver” means a contractual agreement 16 between a supplier of travel services and the supplier’s 17 customers to waive some or all of the nonrefundable 18 cancellation fee provisions of the supplier’s underlying travel 19 contract with or without regard to the reason for cancellation 20 or to the form of reimbursement. A cancellation fee waiver 21 shall not be considered insurance. 22 4. “Commissioner” means the commissioner of insurance. 23 5. “Designated responsible producer” means an employee of 24 a limited lines travel insurance producer who is a licensed 25 individual insurance producer and who is designated by the 26 limited lines travel insurance producer as the individual 27 responsible for compliance with the travel insurance laws and 28 regulations applicable to the limited lines travel insurance 29 producer and the limited lines travel insurance producer’s 30 registrants. 31 6. “Eligible group” means two or more persons who 32 are engaged in a common enterprise, or have an economic, 33 educational, or social affinity or relationship, including but 34 not limited to any of the following: 35 -1- LSB 5641YC (4) 89 ko/rn 1/ 19

H.F. _____ a. An entity engaged in the business of providing travel 1 or travel services, including but not limited to a tour 2 operator, a lodging provider, a vacation property owner, a 3 hotel, a resort, a travel club, a travel agency, a property 4 manager, a cultural exchange program, and a common carrier or 5 the operator, owner, or lessor of a means of transportation 6 of passengers including but not limited to an airline, a 7 cruise line, a railroad, a steamship company, and a public bus 8 carrier, where with regard to any particular travel or type of 9 travel or travelers, all members or customers have a common 10 exposure to risk attendant to such travel. 11 b. A college, school, or other institution of learning, 12 including all students, teachers, employees, and volunteers of 13 the college, school, or other institution of learning. 14 c. An employer, including all employees, volunteers, 15 contractors, and members of the employer’s board of directors; 16 and all dependents and guests of an employee, a volunteer, a 17 contractor, or a member of the employer’s board of directors. 18 d. A sports team, sports camp, or a sponsor of a sports team 19 or sports camp, including all participants, members, campers, 20 employees, officials, supervisors, or volunteers of the sports 21 team, sports camp, or the sponsor of a sports team or sports 22 camp. 23 e. A religious, charitable, recreational, educational, 24 or civic organization, including any group of members, 25 participants, and volunteers of the religious, charitable, 26 recreational, educational, or civic organization. 27 f. A financial institution, a financial institution vendor, 28 or a parent holding company, trustee, agent of, or agent 29 designated by, one or more financial institutions or financial 30 institution vendors, including account holders, credit card 31 holders, debtors, guarantors, and purchasers. 32 g. An incorporated or unincorporated association, including 33 a labor union, that has a common interest, a constitution, and 34 bylaws; and that is organized and maintained in good faith for 35 -2- LSB 5641YC (4) 89 ko/rn 2/ 19

H.F. _____ a purpose other than obtaining insurance for the members or 1 participants of the association. 2 h. A trust or a trustee of a fund established, created, or 3 maintained for the benefit of and covering members, employees, 4 or customers, and that is subject to the commissioner 5 permitting the use of a trust and the premium tax provisions 6 under section 515K.8, of one or more associations meeting the 7 requirements under paragraph “g” . 8 i. An entertainment production company including all 9 participants, volunteers, audience members, contestants, and 10 workers. 11 j. A volunteer fire department, ambulance or rescue 12 organization, first aid organization, civil defense 13 organization, and similar volunteer organizations. 14 k. A preschool, or a day care facility for children or 15 adults. 16 l. An organization for senior citizens. 17 m. An automobile or truck rental or leasing company that 18 covers a group of individuals who may become renters, lessees, 19 or passengers as defined by an individual’s travel status on 20 the rented or leased automobile or truck. The common carrier, 21 the operator, owner, or lessor of a means of transportation, 22 or the automobile or truck rental or leasing company is the 23 policyholder under a policy to which this chapter applies. 24 n. Any other group, as established by the commissioner by 25 rule, in which the members are engaged in a common enterprise, 26 or have an economic, educational, or social affinity or 27 relationship, and for which issuance of a travel insurance 28 policy is not contrary to the public interest. 29 7. “Fulfillment materials” means documentation provided to 30 the purchaser of a travel protection plan that confirms the 31 purchase and that provides details of the travel protection 32 plan coverage and the travel assistance services. 33 8. “Group travel insurance” means travel insurance that is 34 issued to an eligible group. 35 -3- LSB 5641YC (4) 89 ko/rn 3/ 19

H.F. _____ 9. “Limited lines travel insurance producer” means any of the 1 following: 2 a. A licensed managing general agent or a licensed 3 third-party administrator. 4 b. A licensed insurance producer, including a licensed 5 limited lines producer. 6 c. A travel administrator. 7 10. “Offer and disseminate” means to provide general 8 information regarding travel insurance or a travel protection 9 plan, including a description of the coverage and price, and 10 to process an application and collect premiums for travel 11 insurance or a travel protection plan. 12 11. “Primary certificate holder” means an individual who has 13 elected and purchased travel insurance under a group policy. 14 12. “Primary policyholder” means an individual who has 15 elected and purchased individual travel insurance. 16 13. “Travel administrator” means a person who directly 17 or indirectly underwrites, collects charges, collateral, or 18 premiums from, or adjusts or settles claims on, residents 19 of this state in connection with travel insurance. “Travel 20 administrator” shall not include a person whose only actions 21 that would otherwise cause the person to be considered a travel 22 administrator are any of the following: 23 a. A person that works for a travel administrator to 24 the extent that the person’s activities are subject to the 25 supervision and control of the travel administrator. 26 b. A person that is an insurance producer and who sells 27 insurance or is engaged in administrative and claims-related 28 activities within the scope of the person’s producers license. 29 c. A person that is a travel retailer that offers and 30 disseminates travel insurance and that is registered under the 31 license of a limited lines travel insurance producer. 32 d. An individual who adjusts or settles claims in the 33 normal course of the individual’s practice or employment as 34 an attorney and who does not collect charges or premiums in 35 -4- LSB 5641YC (4) 89 ko/rn 4/ 19

H.F. _____ connection with insurance coverage. 1 e. A business entity that is affiliated with a licensed 2 insurer while acting as a travel administrator for the direct 3 and assumed insurance business of an affiliated insurer. 4 14. “Travel assistance services” means a non-insurance, 5 non-insurance-related service for which a consumer is not 6 indemnified based on a fortuitous event and for which provision 7 of the service does not result in the transfer or shifting of 8 risk that constitutes the business of insurance, including but 9 not limited to any of the following services: 10 a. Security advisories. 11 b. Destination information. 12 c. Vaccination and immunization information services. 13 d. Travel reservation services. 14 e. Entertainment planning. 15 f. Activity and event planning. 16 g. Translation assistance. 17 h. Emergency messaging. 18 i. International legal and medical referrals. 19 j. Medical case monitoring. 20 k. Coordination of transportation arrangements. 21 l. Emergency cash transfer assistance. 22 m. Medical prescription replacement assistance. 23 n. Passport and travel document replacement assistance. 24 o. Lost luggage assistance. 25 p. Concierge services. 26 q. Any other service furnished in connection with planned 27 travel. 28 15. a. “Travel insurance” means insurance coverage for 29 personal risks incident to planned travel including all of the 30 following: 31 (1) Interruption or cancellation of a trip or event. 32 (2) Loss of baggage or personal effects. 33 (3) Damage to an accommodation or to a rental vehicle. 34 (4) Sickness, accident, disability, or death occurring 35 -5- LSB 5641YC (4) 89 ko/rn 5/ 19

H.F. _____ during travel. 1 (5) Emergency evacuation. 2 (6) Repatriation of remains. 3 (7) Any other contractual obligation to indemnify or pay a 4 specified amount to a traveler upon a determinable contingency 5 related to travel as established by the commissioner by rule. 6 b. “Travel insurance” shall not include a major medical plan 7 that provides comprehensive medical protection for a traveler 8 for a trip that lasts longer than six months, including a 9 traveler who works or resides overseas as an expatriate, or 10 any other product that requires a specific insurance producer 11 license. 12 16. “Travel protection plan” means a product that provides 13 one or more of any of the following: 14 a. Travel insurance. 15 b. Travel assistance services. 16 c. Cancellation fee waivers. 17 17. “Travel retailer” means a business entity that makes, 18 arranges, or offers planned travel and that may offer and 19 disseminate travel insurance as a service to the business’s 20 customers on behalf of and under the direction of a limited 21 lines travel insurance producer. 22 Sec. 3. NEW SECTION . 515K.3 Licensing and registration —— 23 limited lines travel insurance producers and travel retailers. 24 1. a. The commissioner may issue a limited lines travel 25 insurance producer license to a person that has filed an 26 application for a limited lines travel insurance producer 27 license in the form and manner prescribed by the commissioner 28 by rule. 29 b. A limited lines travel insurance producer must be 30 licensed to sell, solicit, or negotiate travel insurance 31 through a licensed insurer. A person shall not act as a 32 limited lines travel insurance producer, or as a travel 33 retailer, unless the person is licensed as a limited lines 34 travel insurance producer or is registered as a travel 35 -6- LSB 5641YC (4) 89 ko/rn 6/ 19

H.F. _____ retailer. 1 2. A travel retailer may offer and disseminate travel 2 insurance under a limited lines travel insurance producer’s 3 license only if all of the following conditions are satisfied: 4 a. The travel retailer or the limited lines travel insurance 5 producer provides all of the following to a purchaser of travel 6 insurance: 7 (1) A description of the material terms, or the actual 8 material terms, of the travel insurance coverage. 9 (2) A description of the claim filing process. 10 (3) A description of the review and cancellation process. 11 (4) The identity of, and the contact information for, the 12 insurer and the limited lines travel insurance producer. 13 b. (1) Beginning on the date of licensure, a limited 14 lines travel insurance producer shall establish and maintain a 15 register, in the form and manner prescribed by the commissioner 16 by rule, of each travel retailer that offers travel insurance 17 on behalf of the limited lines travel insurance producer. The 18 register shall include all of the following information: 19 (a) The name, address, and contact information of each 20 travel retailer. 21 (b) The name, address, and contact information of an 22 officer or other individual who directs or controls each travel 23 retailer’s operations. 24 (c) Each travel retailer’s federal tax identification 25 number. 26 (2) A limited lines travel insurance producer shall submit 27 the register under subparagraph (1) to the commissioner upon 28 the commissioner’s reasonable request, and shall certify that 29 the register complies with 18 U.S.C. §1033. 30 (3) Provisions under Title XIII, subtitle 1, that are 31 applicable to the suspension or revocation of a resident 32 insurance producer’s license, or to the imposition of penalties 33 on a resident insurance producer, shall be applicable to 34 limited lines travel insurance producers and travel retailers. 35 -7- LSB 5641YC (4) 89 ko/rn 7/ 19

H.F. _____ c. The limited lines travel insurance producer has a 1 designated responsible producer. 2 d. The designated responsible producer, president, 3 secretary, treasurer, and any other officer or individual 4 who directs or controls the limited lines travel insurance 5 producer’s insurance operations has complied with all 6 fingerprinting requirements applicable to insurance producers 7 in this state. 8 e. The limited lines travel insurance producer has paid all 9 licensing fees required by state law. 10 f. The limited lines travel insurance producer requires 11 each employee and each authorized representative of the travel 12 retailer who offers and disseminates travel insurance to 13 successfully complete a training program that, at a minimum, 14 educates each employee and each authorized representative on 15 the details of each type of insurance offered by the travel 16 retailer, ethical sales practices, and all disclosures that are 17 required to be made to prospective purchasers. 18 3. A travel retailer that offers and disseminates travel 19 insurance shall make brochures or other written materials 20 that have been approved by the travel insurer available 21 to prospective purchasers. The brochures or other written 22 materials shall, at a minimum, do all of the following: 23 a. Provide the name, address, and telephone number of the 24 insurer and the limited lines travel insurance producer. 25 b. Advise that the purchase of travel insurance by the 26 prospective purchaser is not required in order to purchase any 27 other product or service from the travel retailer. 28 c. Explain that a travel retailer that is not licensed as 29 an insurance producer is only permitted to provide general 30 information about travel insurance offered by the travel 31 retailer, including a description of the coverage and price; 32 however, the travel retailer is not qualified or authorized 33 to answer technical questions about the terms and conditions 34 of the travel insurance, or to evaluate the adequacy of the 35 -8- LSB 5641YC (4) 89 ko/rn 8/ 19

H.F. _____ prospective purchaser’s existing insurance coverage. 1 4. A travel retailer’s employee or authorized 2 representative who is not licensed as an insurance producer 3 shall not do any of the following: 4 a. Evaluate or interpret the technical terms, benefits, 5 or conditions of travel insurance offered to a prospective 6 purchaser. 7 b. Evaluate or provide advice on a prospective purchaser’s 8 existing insurance coverage. 9 c. Represent themselves as a licensed insurer, a licensed 10 insurance producer, or as an insurance expert. 11 5. Notwithstanding any other provision of law to the 12 contrary, a travel retailer whose insurance-related activities 13 and the insurance-related activities of the travel retailer’s 14 employees and authorized representatives are limited to 15 offering and disseminating travel insurance on behalf of 16 and under the direction of a limited lines travel insurance 17 producer in compliance with this chapter, shall be authorized 18 to receive related compensation if the travel retailer is 19 included in the register maintained by the limited lines travel 20 insurance producer under subsection 2, paragraph “b” . 21 6. As an insurer’s designee, a limited lines travel 22 insurance producer shall be responsible for the acts of each 23 travel retailer that offers and disseminates travel insurance 24 under the limited lines travel insurance producer’s license and 25 shall use reasonable means to ensure that each travel retailer 26 complies with this chapter. 27 7. A person that is licensed as an insurance producer in a 28 major line of authority shall be authorized to sell, solicit, 29 and negotiate travel insurance. A property and casualty 30 insurance producer shall not be required to become appointed 31 by an insurer in order to sell, solicit, or negotiate travel 32 insurance. 33 Sec. 4. NEW SECTION . 515K.4 Travel protection plans. 34 A travel protection plan may be offered in this state at one 35 -9- LSB 5641YC (4) 89 ko/rn 9/ 19

H.F. _____ price for all features included in the travel protection plan 1 if all of the following are true: 2 1. The travel protection plan clearly discloses to the 3 purchaser, at or prior to the time of purchase, that the travel 4 protection plan includes, as applicable, travel insurance, 5 travel assistance services, and cancellation fee waivers. 6 2. A purchaser is provided with an opportunity at or prior 7 to the time of purchase to obtain additional details regarding 8 each feature and the cost of each feature. 9 3. The fulfillment materials provided to the purchaser do 10 all of the following: 11 a. Describe and delineate the travel insurance, travel 12 assistance services, and cancellation fee waivers included in 13 the travel protection plan. 14 b. Include, as applicable, travel insurance disclosures 15 and the contact information for all persons providing travel 16 assistance services and cancellation fee waivers. 17 c. Describe, as applicable, all preexisting condition 18 exclusions included in the travel insurance policy. 19 Sec. 5. NEW SECTION . 515K.5 Sales and marketing practices. 20 1. All persons offering travel insurance to residents of 21 this state shall be subject to sections 507B.3 and 507B.4, 22 except as otherwise provided in this section. In the event of 23 a conflict between this chapter and another provision under 24 Title XIII, subtitle 1, regarding the sale and marketing of 25 travel insurance and travel protection plans, this chapter 26 shall control. 27 2. a. Any document provided to a prospective purchaser 28 prior to the prospective purchaser’s purchase of travel 29 insurance, including but not limited to sales, advertising, 30 and marketing materials, shall be consistent with the 31 travel insurance policy, including but not limited to forms, 32 endorsements, policies, rate filings, and certificates of 33 insurance. 34 b. If a travel insurance policy or a travel insurance 35 -10- LSB 5641YC (4) 89 ko/rn 10/ 19

H.F. _____ certificate contains any preexisting condition exclusion, a 1 prospective purchaser shall, any time prior to the time of 2 purchase, be provided an opportunity to learn more about the 3 preexisting condition exclusion. Any preexisting condition 4 exclusion shall also be included in the travel insurance policy 5 or travel insurance certificate fulfillment materials. 6 c. The fulfillment materials and the information described 7 in section 515K.4 shall be provided to a primary policyholder 8 or to a primary certificate holder as soon as practicable 9 following the policyholder’s or the certificate holder’s 10 purchase of a travel protection plan. From the date of 11 purchase of a travel protection plan, a primary policyholder 12 or a primary certificate holder may cancel the policy or the 13 certificate for a full refund of the purchase price of the 14 travel protection plan until the first occurrence of any of the 15 following: 16 (1) An insured has begun travel that is covered under the 17 travel protection plan. 18 (2) An insured has filed a claim under the travel protection 19 plan. 20 (3) It has been at least fifteen days since the date of 21 delivery via the United States postal service of the travel 22 protection plan’s fulfillment materials to the policyholder or 23 the certificate holder. 24 (4) It has been ten or more calendar days following the date 25 of delivery by electronic means, in compliance with chapter 26 505B, of the travel protection plan’s fulfillment materials to 27 the policyholder or the certificate holder. 28 d. An insurer shall disclose in the policy documentation 29 and fulfillment materials provided to the purchaser of travel 30 insurance whether the travel insurance is primary or secondary 31 to any other applicable insurance coverage. 32 e. If travel insurance is marketed directly to consumers 33 through an insurer’s internet site, or by another person via 34 an aggregator site, it shall not be an unfair trade practice 35 -11- LSB 5641YC (4) 89 ko/rn 11/ 19

H.F. _____ or other violation of law for the insurer or the other person 1 to provide an accurate summary or short description of the 2 available insurance coverage, if all provisions of each 3 available travel insurance policy are easily accessible to 4 consumers via electronic means. 5 3. No person shall offer, solicit, or negotiate travel 6 insurance or a travel protection plan on an individual or group 7 basis through use of a negative option or an opt out that 8 requires a consumer to take an affirmative action to deselect 9 coverage, including but not limited to unchecking a box on an 10 electronic form, if the consumer purchases travel insurance or 11 a travel protection plan. 12 4. It shall be an unfair trade practice pursuant to section 13 507B.3 and section 507B.4 to do any of the following: 14 a. Offer or sell a travel insurance policy that, due to an 15 exclusion or other provisions in the policy, cannot result in 16 payment of any claim made by any insured under the policy. 17 b. Market blanket travel insurance coverage as no cost 18 coverage. 19 5. If a consumer’s travel destination is located in a 20 jurisdiction that mandates specific insurance coverage, it 21 shall not be an unfair trade practice to require that the 22 consumer, as a condition of purchasing a travel package, select 23 one of the following options: 24 a. Purchase of the coverage required by the destination 25 jurisdiction through either the travel retailer or the limited 26 lines travel insurance producer that provides the travel 27 package. 28 b. Agree to obtain and provide proof of coverage that 29 meets the destination jurisdiction’s requirements prior to the 30 consumer’s departure. 31 Sec. 6. NEW SECTION . 515K.6 Travel administrators. 32 1. Notwithstanding any provision of Title XIII, subtitle 33 1, to the contrary, a person shall not act as, or represent 34 itself as, a travel administrator for travel insurance in this 35 -12- LSB 5641YC (4) 89 ko/rn 12/ 19

H.F. _____ state unless the person meets at least one of the following 1 requirements: 2 a. The person is a licensed property and casualty insurance 3 producer in this state. 4 b. The person is in compliance with all laws and regulations 5 that are applicable to managing general agents in this state. 6 c. The person is in compliance with all laws and regulations 7 that are applicable to third-party administrators in this 8 state. 9 2. An insurer shall be responsible for the acts of a travel 10 administrator administering travel insurance underwritten by 11 the insurer, and for ensuring that the travel administrator 12 maintains all records related to the insurer and makes the 13 records available to the commissioner upon request of the 14 commissioner. 15 Sec. 7. NEW SECTION . 515K.7 Rates, forms, eligibility, and 16 underwriting. 17 1. Notwithstanding any provision of Title XIII, subtitle 1, 18 to the contrary, travel insurance shall be classified and filed 19 for purposes of rates and forms under an inland marine line of 20 insurance provided that travel insurance that provides coverage 21 for sickness, accident, disability or death occurring during 22 travel, either exclusively, or in conjunction with related 23 coverages of emergency evacuation or repatriation of remains, 24 or incidental limited property and casualty benefits such as 25 baggage or trip cancellation, may be filed under either an 26 accident and health line of insurance or an inland marine line 27 of insurance. 28 2. Travel insurance may be issued in the form of an 29 individual insurance policy, a group travel insurance policy, 30 or a blanket travel insurance policy. 31 3. Eligibility and underwriting standards for travel 32 insurance may be developed and provided based on travel 33 protection plans designed for individual or identified 34 marketing or distribution channels, provided that the standards 35 -13- LSB 5641YC (4) 89 ko/rn 13/ 19

H.F. _____ also meet the state’s underwriting standards for the line of 1 insurance. 2 Sec. 8. NEW SECTION . 515K.8 Tax on gross premiums. 3 1. An insurer that offers travel insurance shall pay tax 4 on gross premiums, as provided in section 432.1, on travel 5 insurance premiums paid by any of the following: 6 a. A primary policyholder who is a resident of this state. 7 b. A primary certificate holder who is a resident of this 8 state. 9 c. A blanket travel insurance policyholder that is a 10 resident of this state, or that has the policyholder’s 11 principal place of business or the principal place of business 12 of an affiliate or subsidiary that has purchased blanket 13 travel insurance in this state for eligible blanket group 14 members, subject to any apportionment rules that apply to the 15 insurer across multiple taxing jurisdictions, or that permit 16 the insurer to allocate premiums on an apportioned basis in a 17 reasonable and equitable manner in those taxing jurisdictions. 18 2. An insurer that offers travel insurance shall do all of 19 the following: 20 a. Document the state of residence or the state of the 21 principal place of business of the primary policyholder or 22 primary certificate holder. 23 b. Report as premiums only the amount allocable to travel 24 insurance, and not report any amounts received from travel 25 assistance services or cancellation fee waivers. 26 Sec. 9. NEW SECTION . 515K.9 Applicability. 27 1. This chapter shall apply to travel insurance that covers 28 any resident of this state, and travel insurance that is sold, 29 solicited, negotiated, or offered in this state, and to any 30 travel insurance policy or certificate that is delivered or 31 issued for delivery in this state. This chapter shall not 32 apply to cancellation fee waivers or to travel assistance 33 services except as expressly provided in this chapter. 34 2. All applicable provisions of Title XIII, subtitle 1, 35 -14- LSB 5641YC (4) 89 ko/rn 14/ 19

H.F. _____ shall apply to travel insurance except that specific provisions 1 of this chapter shall supersede any general provisions of Title 2 XIII, subtitle 1, that are otherwise applicable to travel 3 insurance. 4 Sec. 10. NEW SECTION . 515K.10 Rules. 5 The commissioner may adopt rules pursuant to chapter 17A as 6 necessary to implement and administer this chapter. 7 EXPLANATION 8 The inclusion of this explanation does not constitute agreement with 9 the explanation’s substance by the members of the general assembly. 10 This bill is related to the sale of travel insurance and 11 travel protection plans. 12 The bill permits the commissioner of insurance 13 (commissioner) to issue a limited lines travel insurance 14 producer (travel insurance producer) license to a person that 15 files an application in the form and manner prescribed by the 16 commissioner. A travel insurance producer must be licensed 17 to sell, solicit, or negotiate travel insurance through a 18 licensed insurer. “Travel insurance” is defined in the bill. 19 A person shall not act as a travel insurance producer, or as a 20 travel retailer (retailer), unless the person is licensed as 21 a travel insurance producer or is registered as a retailer. 22 “Travel retailer” is defined in the bill. A retailer may offer 23 and disseminate travel insurance under a travel insurance 24 producer’s license only if all of the conditions as detailed 25 in the bill are satisfied. “Offer and disseminate” is defined 26 in the bill. 27 The bill requires that a retailer that offers and 28 disseminates travel insurance make brochures or other written 29 materials that have been approved by the travel insurer, and 30 that meet the requirements as detailed in the bill, available 31 to prospective purchasers. The bill provides that a retailer’s 32 employee or authorized representative who is not licensed as 33 an insurance producer shall not evaluate or interpret the 34 technical terms, benefits, or conditions of travel insurance 35 -15- LSB 5641YC (4) 89 ko/rn 15/ 19

H.F. _____ offered to a prospective purchaser; evaluate or provide advice 1 on a prospective purchaser’s existing insurance coverage; or 2 hold oneself out as a licensed insurer, a licensed insurance 3 producer, or an insurance expert. The bill provides that as 4 an insurer’s designee, a travel insurance producer shall be 5 responsible for the acts of each retailer that offers and 6 disseminates travel insurance under the travel insurance 7 producer’s license, and shall use reasonable means to ensure 8 that each retailer complies with the applicable requirements 9 in the bill. 10 Under the bill, a person that is licensed in a major line 11 of authority as an insurance producer shall be authorized to 12 sell, solicit, and negotiate travel insurance. A property and 13 casualty insurance producer shall not be required to become 14 appointed by an insurer in order to sell, solicit, or negotiate 15 travel insurance. 16 Travel protection plans (plan) may be offered in the state 17 at one price for all features included in the plan if the 18 requirements detailed in the bill are satisfied. All persons 19 offering travel insurance to residents of this state shall 20 be subject to Code sections 507B.3 and 507B.4, except as 21 otherwise provided in the bill. The bill requires that any 22 document provided to a prospective purchaser prior to the 23 purchaser’s purchase of travel insurance, including but not 24 limited to sales, advertising, and marketing materials, is 25 consistent with the travel insurance policy, including but not 26 limited to forms, endorsements, policies, rate filings, and 27 certificates of insurance. If a travel insurance policy or a 28 travel insurance certificate contains any preexisting condition 29 exclusion, a prospective purchaser shall, at any time prior to 30 the time of purchase, be provided an opportunity to learn more 31 about the exclusion. Any preexisting condition exclusion shall 32 also be included in the travel insurance policy or the travel 33 insurance certificate fulfillment materials. “Fulfillment 34 materials” is defined in the bill. 35 -16- LSB 5641YC (4) 89 ko/rn 16/ 19

H.F. _____ The bill allows a primary policyholder or a primary 1 certificate holder, from the date of purchase of a plan, to 2 cancel the policy or certificate, as described in the bill, 3 for a full refund of the purchase price of the plan. “Primary 4 policyholder” and “primary certificate holder” are defined in 5 the bill. An insurer is required to disclose in the policy 6 documentation and fulfillment materials provided to the 7 purchaser of travel insurance whether the travel insurance 8 is primary or secondary to any other applicable insurance 9 coverage. 10 If travel insurance is marketed directly to consumers 11 through an insurer’s internet site, or by another person via 12 an aggregator site, it shall not be an unfair trade practice 13 or other violation of law for the insurer or the other person 14 to provide an accurate summary or short description of the 15 available insurance coverage, if all provisions of each 16 available travel insurance policy are easily accessible to 17 consumers via electronic means. “Aggregator site” is defined 18 in the bill. The bill prohibits a person from offering, 19 soliciting, or negotiating travel insurance or a plan on an 20 individual or group basis through use of a negative option or 21 opt out that requires a consumer to take affirmative action to 22 deselect coverage if the consumer purchases travel insurance or 23 a plan. The bill provides that it is an unfair trade practice 24 under Code sections 507B.3 and 507B.4 to offer or sell a travel 25 insurance policy that, due to exclusions of other provisions in 26 the policy, cannot result in payment of any claim made by any 27 insured under the policy; or to market blanket travel insurance 28 coverage as no cost coverage. “Blanket travel insurance” is 29 defined in the bill as a policy of travel insurance issued to 30 any eligible group that provides coverage for specific classes 31 of persons as defined in the policy, with coverage provided to 32 all members of the eligible group without a separate charge to 33 individual members of the eligible group. “Eligible group” is 34 also defined in the bill. 35 -17- LSB 5641YC (4) 89 ko/rn 17/ 19

H.F. _____ If a consumer’s travel destination is located in a 1 jurisdiction that mandates specific insurance coverage, the 2 bill provides that it is not an unfair trade practice to 3 require that the consumer, as a condition of purchasing a 4 travel package, either purchase the coverage required by 5 the jurisdiction through either the retailer or the travel 6 insurance producer that provides the travel package, or 7 agree to obtain and provide proof of coverage that meets the 8 jurisdiction’s requirements prior to the consumer’s departure. 9 Notwithstanding any other provisions of Code Title XIII, 10 subtitle 1, a person shall not act as or represent itself as, 11 a travel administrator for travel insurance in this state 12 unless the person is a licensed property and casualty insurance 13 producer in this state, or is in compliance with all laws and 14 regulations that are applicable to managing general agents 15 or to third-party administrators in this state. “Travel 16 administrator” is defined in the bill. The bill provides 17 that an insurer is responsible for the acts of a travel 18 administrator administering travel insurance underwritten by 19 the insurer, and for ensuring that the travel administrator 20 maintains all records related to the insurer. 21 Notwithstanding any provision of Code Title XIII, subtitle 22 1, to the contrary, travel insurance shall be classified 23 and filed for purposes of rates and forms as detailed in 24 the bill. Travel insurance may be issued in the form of an 25 individual, group, or blanket policy. “Group travel insurance” 26 is defined in the bill. Eligibility and underwriting standards 27 for travel insurance may be developed and provided based on 28 travel protection plans designed for individual or identified 29 marketing or distribution channels, provided the standards also 30 meet the state’s underwriting standards for the inland marine 31 line of insurance. An insurer that offers travel insurance 32 shall pay tax on travel insurance premiums as detailed in the 33 bill. 34 The bill applies to travel insurance that covers any 35 -18- LSB 5641YC (4) 89 ko/rn 18/ 19

H.F. _____ resident of this state and to travel insurance that is sold, 1 solicited, negotiated, or offered in this state, and to any 2 travel insurance policy or certificate that is delivered or 3 issued for delivery in this state. The bill does not apply 4 to cancellation fee waivers or to travel assistance services 5 except as expressly provided in the bill. “Cancellation fee 6 waivers” and “travel assistance services” are defined in the 7 bill. All applicable provisions of Code Title XIII, subtitle 8 1, shall apply to travel insurance except that specific 9 provisions of the bill shall supersede any general provisions 10 of Code Title XIII, subtitle 1, that are otherwise applicable 11 to travel insurance. 12 The commissioner may adopt rules as necessary to implement 13 and administer the bill. 14 -19- LSB 5641YC (4) 89 ko/rn 19/ 19