Bill > S2921

This bill aims to establish a comprehensive legal framework for the sale of travel insurance in the state, clarifying definitions and regulations for various entities involved. It removes travel insurance from the definition of "Health benefit plan" in existing law, and then introduces new provisions that define "travel insurance" to include coverage for risks like trip interruption, lost baggage, and sickness during travel, while excluding major medical plans for long-term travelers. The bill establishes licensing requirements for "limited lines travel insurance producers" and "travel retailers," who are businesses that arrange travel and may offer travel insurance. It outlines specific responsibilities for these entities, including providing clear disclosures to consumers about coverage, claims processes, and cancellation policies, and mandates training for employees who offer travel insurance. The bill also addresses premium tax obligations for travel insurers, clarifies how "travel protection plans" (which may combine insurance, assistance services, and fee waivers) should be disclosed to consumers, and sets standards for sales practices, including prohibiting negative option enrollment and the marketing of blanket travel insurance as free. Finally, it specifies that travel insurance will be classified under inland marine insurance for rate and form filings, with some exceptions for health-related coverages, and sets an effective date 90 days after enactment.

Business and Industry

https://malegislature.gov/Bills/194/S2921