Raised Bill No. 398 is a comprehensive legislative proposal aimed at regulating and taxing travel insurance, as well as defining the roles and responsibilities of associated entities, products, and professionals within the state. The bill introduces new definitions, such as "Aggregator web site," "blanket travel insurance policy," "Primary certificate holder," "Primary policyholder," "Travel administrator," "Travel assistance services," "Travel insurance," and "Travel protection plan." It also updates existing definitions and renumbers subsections to accommodate these changes. The bill clarifies that travel insurance does not include major medical plans for long-term travel, products requiring specific insurance licenses, cancellation fee waivers, or travel assistance services. It repeals and replaces certain sections of the general statutes, with notable deletions including the previous definition of "Travel insurance" and the term "Designated travel retailer." The bill also specifies the roles of limited lines travel insurance producers and travel retailers, including compliance, training, and consumer disclosures, and outlines the conditions under which travel retailers can offer travel insurance.

Additionally, Raised Bill No. 398 sets forth the taxation of travel insurance premiums, requiring that premiums paid by state residents or policyholders with a principal place of business in the state are subject to state tax. The bill mandates that insurers document the residency or principal place of business of policyholders and report only the amount allocable to travel insurance. It also includes provisions for the suspension, revocation, or refusal to issue or renew a limited lines travel insurance producer's authorization, and outlines potential civil penalties for violations. Furthermore, the bill specifies fees for various insurance-related licenses and services, effective October 1, 2024, and allows for the adoption of regulations to implement these provisions. The bill aims to ensure fair and reflective fee structures for insurance-related activities and updates the regulatory framework for insurance practices and fees. It is set to take effect on October 1, 2024, and includes insertions of new legal language and deletions from the current law, with the intent to regulate and tax travel insurance and related aspects in the state.

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