H.F. 2540 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- HF 2540 (2) 89 ko/rn/md 1/ 15

H.F. 2540 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 covering students, teachers, employees, and volunteers of the 13 college, school, or other institution of learning. 14 c. An employer, covering any group of 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 19 team or sports camp, covering 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, covering any group of members, 25 participants, or volunteers of the religious, charitable, 26 recreational, educational, or civic organization or a branch 27 thereof. 28 f. A financial institution, a financial institution vendor, 29 or a parent holding company, trustee, agent of, or agent 30 designated by, one or more financial institutions or financial 31 institution vendors, including account holders, credit card 32 holders, debtors, guarantors, or purchasers. 33 g. An incorporated or unincorporated association, including 34 a labor union, that has a common interest, a constitution, and 35 -2- HF 2540 (2) 89 ko/rn/md 2/ 15

H.F. 2540 bylaws; and that is organized and maintained in good faith for 1 a purpose other than obtaining insurance for the members or 2 participants of the association. 3 h. A trust or a trustee of a fund established, created, or 4 maintained for the benefit of and covering members, employees, 5 or customers, and that is subject to the commissioner 6 permitting the use of a trust and the premium tax provisions 7 under section 515K.8, of one or more associations meeting the 8 requirements under paragraph “g” . 9 i. An entertainment production company covering any group 10 of participants, volunteers, audience members, contestants, or 11 workers. 12 j. A volunteer fire department, ambulance or rescue 13 organization, first aid organization, civil defense 14 organization, and similar volunteer organizations. 15 k. A preschool, or a day care facility for children or 16 adults. 17 l. An organization for senior citizens. 18 m. An automobile or truck rental or leasing company that 19 covers a group of individuals who may become renters, lessees, 20 or passengers as defined by an individual’s travel status on 21 the rented or leased automobile or truck. The common carrier, 22 the operator, owner, or lessor of a means of transportation, 23 or the automobile or truck rental or leasing company is the 24 policyholder under a policy to which this chapter applies. 25 n. Any other group, as determined by the commissioner by 26 rule, that the members are engaged in a common enterprise, 27 or have an economic, educational, or social affinity or 28 relationship, and for which issuance of a travel insurance 29 policy is not contrary to the public interest. 30 7. “Fulfillment materials” means documentation sent to 31 the purchaser of a travel protection plan that confirms the 32 purchase and that provides details of the travel protection 33 plan coverage and the travel assistance services. 34 8. “Group travel insurance” means travel insurance that is 35 -3- HF 2540 (2) 89 ko/rn/md 3/ 15

H.F. 2540 issued to an eligible group. 1 9. “Limited lines travel insurance producer” means any of the 2 following: 3 a. A licensed managing general agent or a licensed 4 third-party administrator. 5 b. A licensed insurance producer, including a licensed 6 limited lines producer. 7 c. A travel administrator. 8 10. “Offer and disseminate” means to provide general 9 information regarding travel insurance or a travel protection 10 plan, including a description of the coverage and price, and 11 to process an application and collect premiums for travel 12 insurance or a travel protection plan. 13 11. “Primary certificate holder” means an individual who has 14 elected and purchased travel insurance under a group policy. 15 12. “Primary policyholder” means an individual who has 16 elected and purchased individual travel insurance. 17 13. “Travel administrator” means a person who directly 18 or indirectly underwrites, collects charges, collateral, or 19 premiums from, or adjusts or settles claims on, residents 20 of this state in connection with travel insurance. “Travel 21 administrator” shall not include a person whose only actions 22 that would otherwise cause the person to be considered a travel 23 administrator are any of the following: 24 a. A person that works for a travel administrator to 25 the extent that the person’s activities are subject to the 26 supervision and control of the travel administrator. 27 b. A person that is an insurance producer and who sells 28 insurance or is engaged in administrative and claims-related 29 activities within the scope of the person’s producers license. 30 c. A person that is a travel retailer that offers and 31 disseminates travel insurance and that is registered under the 32 license of a limited lines travel insurance producer. 33 d. An individual who adjusts or settles claims in the 34 normal course of the individual’s practice or employment as 35 -4- HF 2540 (2) 89 ko/rn/md 4/ 15

H.F. 2540 an attorney and who does not collect charges or premiums in 1 connection with insurance coverage. 2 e. A business entity that is affiliated with a licensed 3 insurer while acting as a travel administrator for the direct 4 and assumed insurance business of an affiliated insurer. 5 14. “Travel assistance services” means a non-insurance, 6 non-insurance-related service for which a consumer is not 7 indemnified based on a fortuitous event and for which provision 8 of the service does not result in the transfer or shifting of 9 risk that constitutes the business of insurance, including but 10 not limited to any of the following services: 11 a. Security advisories. 12 b. Destination information. 13 c. Vaccination and immunization information services. 14 d. Travel reservation services. 15 e. Entertainment planning. 16 f. Activity and event planning. 17 g. Translation assistance. 18 h. Emergency messaging. 19 i. International legal and medical referrals. 20 j. Medical case monitoring. 21 k. Coordination of transportation arrangements. 22 l. Emergency cash transfer assistance. 23 m. Medical prescription replacement assistance. 24 n. Passport and travel document replacement assistance. 25 o. Lost luggage assistance. 26 p. Concierge services. 27 q. Any other service furnished in connection with planned 28 travel. 29 15. a. “Travel insurance” means insurance coverage for 30 personal risks incident to planned travel including all of the 31 following: 32 (1) Interruption or cancellation of a trip or event. 33 (2) Loss of baggage or personal effects. 34 (3) Damage to an accommodation or to a rental vehicle. 35 -5- HF 2540 (2) 89 ko/rn/md 5/ 15

H.F. 2540 (4) Sickness, accident, disability, or death occurring 1 during travel. 2 (5) Emergency evacuation. 3 (6) Repatriation of remains. 4 (7) Any other contractual obligation to indemnify or pay a 5 specified amount to a traveler upon a determinable contingency 6 related to travel as approved by the commissioner. 7 b. “Travel insurance” shall not include a major medical plan 8 that provides comprehensive medical protection for a traveler 9 for a trip that lasts longer than six months, including a 10 traveler who works or resides overseas as an expatriate, or 11 any other product that requires a specific insurance producer 12 license. 13 16. “Travel protection plan” means a product that provides 14 one or more of any of the following: 15 a. Travel insurance. 16 b. Travel assistance services. 17 c. Cancellation fee waivers. 18 17. “Travel retailer” means a business entity that makes, 19 arranges, or offers planned travel and that may offer and 20 disseminate travel insurance as a service to the business’s 21 customers on behalf of and under the direction of a limited 22 lines travel insurance producer. 23 Sec. 3. NEW SECTION . 515K.3 Licensing and registration —— 24 limited lines travel insurance producers and travel retailers. 25 1. a. The commissioner may issue a limited lines travel 26 insurance producer license to a person that has filed an 27 application for a limited lines travel insurance producer 28 license in the form and manner prescribed by the commissioner. 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- HF 2540 (2) 89 ko/rn/md 6/ 15

H.F. 2540 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 15 a register, in the form and manner prescribed by the 16 commissioner, of each travel retailer that offers travel 17 insurance on behalf of the limited lines travel insurance 18 producer. The register shall include all of the following 19 information: 20 (a) The name, address, and contact information of each 21 travel retailer. 22 (b) The name, address, and contact information of an 23 officer or other individual who directs or controls each travel 24 retailer’s operations. 25 (c) Each travel retailer’s federal tax identification 26 number. 27 (2) A limited lines travel insurance producer shall submit 28 the register under subparagraph (1) to the commissioner upon 29 the commissioner’s reasonable request, and shall certify that 30 the register complies with 18 U.S.C. §1033. 31 (3) Provisions under Title XIII, subtitle 1, that are 32 applicable to the suspension or revocation of a resident 33 insurance producer’s license, or to the imposition of penalties 34 on a resident insurance producer, shall be applicable to 35 -7- HF 2540 (2) 89 ko/rn/md 7/ 15

H.F. 2540 limited lines travel insurance producers and travel retailers. 1 c. The limited lines travel insurance producer has a 2 designated responsible producer. 3 d. The designated responsible producer, president, 4 secretary, treasurer, and any other officer or individual 5 who directs or controls the limited lines travel insurance 6 producer’s insurance operations has complied with all 7 fingerprinting requirements applicable to insurance producers 8 in this state. 9 e. The limited lines travel insurance producer has paid all 10 licensing fees required by state law. 11 f. The limited lines travel insurance producer requires 12 each employee and each authorized representative of the travel 13 retailer who offers and disseminates travel insurance to 14 successfully complete a training program that, at a minimum, 15 educates each employee and each authorized representative on 16 the details of each type of insurance offered by the travel 17 retailer, ethical sales practices, and all disclosures that are 18 required to be made to prospective purchasers. 19 3. A travel retailer that offers and disseminates travel 20 insurance shall make brochures or other written materials 21 that have been approved by the travel insurer available 22 to prospective purchasers. The brochures or other written 23 materials shall, at a minimum, do all of the following: 24 a. Provide the name, address, and telephone number of the 25 insurer and the limited lines travel insurance producer. 26 b. Explain that the purchase of travel insurance by the 27 prospective purchaser is not required in order to purchase any 28 other product or service from the travel retailer. 29 c. Explain that a travel retailer that is not licensed as 30 an insurance producer is only permitted to provide general 31 information about travel insurance offered by the travel 32 retailer, including a description of the coverage and price; 33 however, the travel retailer is not qualified or authorized 34 to answer technical questions about the terms and conditions 35 -8- HF 2540 (2) 89 ko/rn/md 8/ 15

H.F. 2540 of the travel insurance, or to evaluate the adequacy of the 1 prospective purchaser’s existing insurance coverage. 2 4. A travel retailer’s employee or authorized 3 representative who is not licensed as an insurance producer 4 shall not do any of the following: 5 a. Evaluate or interpret the technical terms, benefits, 6 or conditions of travel insurance offered to a prospective 7 purchaser. 8 b. Evaluate or provide advice on a prospective purchaser’s 9 existing insurance coverage. 10 c. Represent themselves as a licensed insurer, a licensed 11 insurance producer, or as an insurance expert. 12 5. Notwithstanding any other provision of law to the 13 contrary, a travel retailer whose insurance-related activities 14 and the insurance-related activities of the travel retailer’s 15 employees and authorized representatives are limited to 16 offering and disseminating travel insurance on behalf of 17 and under the direction of a limited lines travel insurance 18 producer in compliance with this chapter, shall be authorized 19 to receive related compensation if the travel retailer is 20 included in the register maintained by the limited lines travel 21 insurance producer under subsection 2, paragraph “b” . 22 6. As an insurer’s designee, a limited lines travel 23 insurance producer shall be responsible for the acts of each 24 travel retailer that offers and disseminates travel insurance 25 under the limited lines travel insurance producer’s license and 26 shall use reasonable means to ensure that each travel retailer 27 complies with this chapter. 28 7. A person that is licensed as an insurance producer in a 29 major line of authority shall be authorized to sell, solicit, 30 and negotiate travel insurance. A property and casualty 31 insurance producer shall not be required to become appointed 32 by an insurer in order to sell, solicit, or negotiate travel 33 insurance. 34 Sec. 4. NEW SECTION . 515K.4 Travel protection plans. 35 -9- HF 2540 (2) 89 ko/rn/md 9/ 15

H.F. 2540 A travel protection plan may be offered in this state at one 1 price for all features included in the travel protection plan 2 if all of the following are true: 3 1. The travel protection plan clearly discloses to the 4 purchaser, at or prior to the time of purchase, that the travel 5 protection plan includes, as applicable, travel insurance, 6 travel assistance services, and cancellation fee waivers. 7 2. A purchaser is provided with an opportunity at or prior 8 to the time of purchase to obtain additional details regarding 9 each feature and the cost of each feature. 10 3. The fulfillment materials provided to the purchaser do 11 all of the following: 12 a. Describe and delineate the travel insurance, travel 13 assistance services, and cancellation fee waivers included in 14 the travel protection plan. 15 b. Include, as applicable, travel insurance disclosures 16 and the contact information for all persons providing travel 17 assistance services and cancellation fee waivers. 18 Sec. 5. NEW SECTION . 515K.5 Sales and marketing practices. 19 1. All persons offering travel insurance to residents of 20 this state shall be subject to sections 507B.3 and 507B.4, 21 except as otherwise provided in this section. In the event of 22 a conflict between this chapter and another provision under 23 Title XIII, subtitle 1, regarding the sale and marketing of 24 travel insurance and travel protection plans, this chapter 25 shall control. 26 2. a. Any document provided to a prospective purchaser 27 prior to the prospective purchaser’s purchase of travel 28 insurance, including but not limited to sales, advertising, 29 and marketing materials, shall be consistent with the 30 travel insurance policy, including but not limited to forms, 31 endorsements, policies, rate filings, and certificates of 32 insurance. 33 b. If a travel insurance policy or a travel insurance 34 certificate contains any preexisting condition exclusion, a 35 -10- HF 2540 (2) 89 ko/rn/md 10/ 15

H.F. 2540 prospective purchaser shall, any time prior to the time of 1 purchase, be provided an opportunity to learn more about the 2 preexisting condition exclusion. Any preexisting condition 3 exclusion information shall also be included in the travel 4 insurance policy or travel insurance certificate fulfillment 5 materials. 6 c. The fulfillment materials and the information described 7 in section 515K.3, subsection 2, paragraph “a” , subparagraphs 8 (1) through (4) shall be provided to a primary policyholder 9 or to a primary certificate holder as soon as practicable 10 following the policyholder’s or the certificate holder’s 11 purchase of a travel protection plan. Unless an insured has 12 either started a covered trip or filed a claim under the travel 13 insurance coverage, a policyholder or certificate holder may 14 cancel a policy or certificate for a full refund of the travel 15 protection plan price from the date of purchase of a travel 16 protection plan until at least fifteen days following the 17 date of delivery of the travel protection plan’s fulfillment 18 materials by postal mail, or ten days following the date 19 of delivery of the travel protection plan’s fulfillment 20 materials by means other than postal mail. For purposes 21 of this paragraph, “delivery” means handing fulfillment 22 materials to the policyholder or certificate holder or sending 23 fulfillment materials by postal mail or electronic means to the 24 policyholder or certificate holder. 25 d. An insurer shall disclose in the policy documentation 26 and fulfillment materials provided to the purchaser of travel 27 insurance whether the travel insurance is primary or secondary 28 to any other applicable insurance coverage. 29 e. If travel insurance is marketed directly to consumers 30 through an insurer’s internet site, or by another person via 31 an aggregator site, it shall not be an unfair trade practice 32 or other violation of law for the insurer or the other person 33 to provide an accurate summary or short description of the 34 available insurance coverage, if all provisions of each 35 -11- HF 2540 (2) 89 ko/rn/md 11/ 15

H.F. 2540 available travel insurance policy are accessible to consumers 1 via electronic means. 2 3. No person shall offer, solicit, or negotiate travel 3 insurance or a travel protection plan on an individual or group 4 basis through use of a negative option or an opt out that 5 requires a consumer to take an affirmative action to deselect 6 coverage, such as unchecking a box on an electronic form when 7 the consumer purchases a trip. 8 4. It shall be an unfair trade practice pursuant to section 9 507B.3 and section 507B.4 to do any of the following: 10 a. Offer or sell a travel insurance policy that, due to an 11 exclusion or other provisions in the policy, cannot result in 12 payment of any claim made by any insured under the policy. 13 b. Market blanket travel insurance coverage as no cost 14 coverage. 15 5. If a consumer’s travel destination is located in a 16 jurisdiction that mandates specific insurance coverage, it 17 shall not be an unfair trade practice to require that the 18 consumer, as a condition of purchasing a travel package, select 19 one of the following options: 20 a. Purchase of the coverage required by the destination 21 jurisdiction through either the travel retailer or the limited 22 lines travel insurance producer that provides the travel 23 package. 24 b. Agree to obtain and provide proof of coverage that 25 meets the destination jurisdiction’s requirements prior to the 26 consumer’s departure. 27 Sec. 6. NEW SECTION . 515K.6 Travel administrators. 28 1. Notwithstanding any provision of Title XIII, subtitle 29 1, to the contrary, a person shall not act as, or represent 30 itself as, a travel administrator for travel insurance in this 31 state unless the person meets at least one of the following 32 requirements: 33 a. The person is a licensed property and casualty insurance 34 producer in this state. 35 -12- HF 2540 (2) 89 ko/rn/md 12/ 15

H.F. 2540 b. The person is in compliance with all laws and regulations 1 that are applicable to managing general agents in this state. 2 c. The person is in compliance with all laws and regulations 3 that are applicable to third-party administrators in this 4 state. 5 2. An insurer shall be responsible for the acts of a travel 6 administrator administering travel insurance underwritten by 7 the insurer, and for ensuring that the travel administrator 8 maintains all records related to the insurer and makes the 9 records available to the commissioner upon request of the 10 commissioner. 11 Sec. 7. NEW SECTION . 515K.7 Rates, forms, eligibility, and 12 underwriting. 13 1. Notwithstanding any provision of Title XIII, subtitle 1, 14 to the contrary, travel insurance shall be classified and filed 15 for purposes of rates and forms under an inland marine line of 16 insurance provided that travel insurance that provides coverage 17 for sickness, accident, disability or death occurring during 18 travel, either exclusively, or in conjunction with related 19 coverages of emergency evacuation or repatriation of remains, 20 or incidental limited property and casualty benefits such as 21 baggage or trip cancellation, may be filed under either an 22 accident and health line of insurance or an inland marine line 23 of insurance. 24 2. Travel insurance may be issued in the form of an 25 individual insurance policy, a group travel insurance policy, 26 or a blanket travel insurance policy. 27 3. Eligibility and underwriting standards for travel 28 insurance may be developed and provided based on travel 29 protection plans designed for individual or identified 30 marketing or distribution channels, provided that the standards 31 also meet the state’s underwriting standards for the line of 32 insurance. 33 Sec. 8. NEW SECTION . 515K.8 Tax on gross premiums. 34 1. An insurer that offers travel insurance shall pay tax 35 -13- HF 2540 (2) 89 ko/rn/md 13/ 15

H.F. 2540 on gross premiums, as provided in section 432.1, on travel 1 insurance premiums paid by any of the following: 2 a. A primary policyholder who is a resident of this state. 3 b. A primary certificate holder who is a resident of this 4 state. 5 c. A blanket travel insurance policyholder that is a 6 resident of this state, or that has the policyholder’s 7 principal place of business or the principal place of business 8 of an affiliate or subsidiary that has purchased blanket 9 travel insurance in this state for eligible blanket group 10 members, subject to any apportionment rules that apply to the 11 insurer across multiple taxing jurisdictions, or that permit 12 the insurer to allocate premiums on an apportioned basis in a 13 reasonable and equitable manner in those taxing jurisdictions. 14 2. An insurer that offers travel insurance shall do all of 15 the following: 16 a. Document the state of residence or the state of the 17 principal place of business of the primary policyholder or 18 primary certificate holder. 19 b. Report as premiums only the amount allocable to travel 20 insurance, and not report any amounts received from travel 21 assistance services or cancellation fee waivers. 22 Sec. 9. NEW SECTION . 515K.9 Applicability. 23 1. This chapter shall apply to travel insurance that covers 24 any resident of this state, and travel insurance that is sold, 25 solicited, negotiated, or offered in this state, and to any 26 travel insurance policy or certificate that is delivered or 27 issued for delivery in this state. This chapter shall not 28 apply to cancellation fee waivers or to travel assistance 29 services except as expressly provided in this chapter. 30 2. All applicable provisions of Title XIII, subtitle 1, 31 shall apply to travel insurance except that specific provisions 32 of this chapter shall supersede any general provisions of Title 33 XIII, subtitle 1, that are otherwise applicable to travel 34 insurance. 35 -14- HF 2540 (2) 89 ko/rn/md 14/ 15