Bill Summary – FastDemocracy

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68th Legislature 2023                                                                                          HB 591.1
                                                HOUSE BILL NO. 591
        INTRODUCED BY E. BUTTREY, A. BUCKLEY, K. SEEKINS-CROWE, R. MARSHALL, D. HARVEY
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  A BILL FOR AN ACT ENTITLED: “AN ACT REVISING LAWS RELATING TO TRAVEL INSURANCE;
  PROVIDING DEFINITIONS; PROVIDING FOR A LIMITED LINES LICENSE; PROVIDING FOR TRAVEL
  PROTECTION PLANS; PROVIDING FOR SALES PRACTICES; PROVIDING FOR TRAVEL
  ADMINISTRATORS; PROVIDING RULEMAKING AUTHORITY; AND AMENDING SECTIONS 33-17-1401, 33-
  17-1402, AND 33-17-1404, MCA.”
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  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
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          Section 1. Section 33-17-1401, MCA, is amended to read:
          "33-17-1401.    Definitions. As used in this part, the following definitions apply:
          (1)   "Administrator" means an administrator as defined in 33-17-102.
          (1)      "Aggregator site" means a website that provides access to information regarding insurance
  products from more than one insurer, including product and insurer information, for use in comparison
  shopping.
          (2)      "Blanket travel insurance" means a policy of travel insurance issued to any 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.
          (3)      "Cancellation fee waiver" means a contractual agreement between a supplier of travel services
  and its customer to waive some or all of the non-refundable 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.
          (4)      "Commissioner" means the commissioner of insurance of the state of Montana.
          (5)      "Fulfillment materials" means documentation sent to the purchaser of a travel protection plan
  confirming the purchase and providing the travel protection plan's coverage and assistance details.
          (2)(6)   "Limited lines travel insurance producer" means a:
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68th Legislature 2023                                                                                              HB 591.1
          (a)      managing general agent or third-party administrator; or
          (b)      licensed insurance producer, including a limited lines producer, designated by an insurer as the
  travel insurance supervising entity as set forth in 33-17-1404.
          (3)(7)   "Offer and disseminate" means providing general information, including a description of
  coverage and price, as well as processing applications, collecting premiums, and performing other activities not
  requiring licensure by the state.
          (8)      “Travel administrator” means a person who directly or indirectly underwrites, collects charges,
  collateral, or premiums from, or adjusts or settles claims on residents of this state in connection with travel
  insurance, except that a person may not be considered a travel administrator if that person’s only actions that
  would otherwise cause it to be considered a travel administrator are among the following:
          (a)      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;
          (b)      an insurance producer selling insurance or engaged in administrative and facilitation of claims-
  related activities within the scope of the producer’s license;
          (c)      a travel retailer offering and disseminating travel insurance and registered under the license of
  a limited lines travel insurance producer in accordance with this part;
          (d)      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; or
          (e)      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.
          (9)      “Travel assistance services” means noninsurance services for which the consumer is not
  indemnified based on a fortuitous event and that do not result in the transfer or shifting of risk that would
  constitute the business of insurance. Travel assistance services include, but are not limited to 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 monitoring; coordination of transportation arrangements;
  emergency cash transfer assistance; medical prescription replacement assistance; passport and travel
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68th Legislature 2023                                                                                             HB 591.1
  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 are not related to
  insurance.
          (4)(10) (a) "Travel insurance" means insurance coverage for personal risks incident to planned travel,
  including but not limited to:
          (i)      interruption or cancellation of a trip or event;
          (ii)     loss of baggage or personal effects;
          (iii)    damages to accommodations or rental vehicles; and
          (iv)     sickness, accident, disability, or death occurring during travel;
          (v)      emergency evacuation;
          (vi)     repatriation of remains; or
          (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.
          (b)      The term does not include major medical plans that provide comprehensive medical protection
  for travelers on trips lasting 6 months or longer, including those working overseas and military personnel being
  deployed.
          (11)     "Travel protection plans" means plans that provide one or more of the following:
          (a)      travel insurance;
          (b)      travel assistance services; or
          (c)      cancellation fee waivers.
          (5)(12) "Travel retailer" means a business entity that makes, arranges, or offers travel services and
  that may offer and disseminate travel insurance as a service to its customers on behalf of and under the
  direction of a limited lines travel insurance producer."
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          Section 2. Section 33-17-1402, MCA, is amended to read:
          "33-17-1402.     Requirements to offer and disseminate travel insurance -- fees -- types of policies
  -- rulemaking. (1) 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
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68th Legislature 2023                                                                                                   HB 591.1
  insurance producer license in a form and manner prescribed by the commissioner. The limited lines travel
  insurance producer must 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 retailer unless properly licensed.
          (2)        A travel retailer may offer and disseminate travel insurance under a limited lines travel
  insurance producer business entity license only if the following conditions are met:
          (a)        the limited lines travel insurance producer or travel retailer provides purchasers of travel
  insurance with:
          (i)        a description of the material terms or the actual material terms of the insurance coverage;
          (ii)       a description of the process for filing a claim;
          (iii)      a description of the review or cancellation process for the travel insurance policy; and
          (iv)       the identity and contact information of the insurer and the limited lines travel insurance
  producer;
          (b)     at the time of licensure, the limited lines travel insurance producer establishes and maintains a
  registry on a form prescribed by the commissioner of each travel retailer that offers travel insurance on the
  limited lines travel insurance producer's behalf. The registry must be maintained and updated annually by the
  limited lines travel insurance producer and must include the name, address, and contact information of each
  travel retailer and of an officer or person who directs or controls each travel retailer's operations, the travel
  retailer's federal tax identification number, and a statement that the travel retailer has not been convicted of a
  violation of 18 U.S.C. 1033. The limited lines travel insurance producer shall submit its registry to the
  commissioner within 10 business days of the commissioner's request. The commissioner shall require a fee for
  filing the registry that is commensurate with the cost of maintaining a file for all registries filed with the
  commissioner.
          (c)(b)     the limited lines travel insurance producer designates an employee who is an individual
  licensed producer as the designated responsible producer responsible for the limited lines travel insurance
  producer's compliance with the applicable insurance laws and rules of this state;
          (d)(c)     the designated responsible producer, president, secretary, treasurer, and any other officer or
  person who directs or controls the limited lines travel insurance producer's insurance operations have complied
  with the fingerprinting requirements in the resident state of the limited lines travel insurance producer;
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68th Legislature 2023                                                                                               HB 591.1
          (e)(d)      the limited lines travel insurance producer has paid all applicable insurance producer licensing
  fees required pursuant to 33-2-708 or other applicable state law; and
          (f)(e)      the limited lines travel insurance producer requires each employee and authorized
  representative of the travel retailer whose duties include offering and disseminating travel insurance to receive
  a program of instruction or training, which may be subject to review by the commissioner. The training material
  must, at a minimum, contain instructions on the types of insurance offered, ethical sales practices, and required
  disclosures to prospective customers.
          (2)(3)      A travel retailer offering or disseminating travel insurance shall make available to prospective
  purchasers brochures or other written materials that:
          (a)         provide the identity and contact information of the insurer and the limited lines travel insurance
  producer;
          (b)         explain that the purchase of travel insurance is not required in order to purchase any other
  product or service from the travel retailer; and
          (c)         explain that a travel retailer employee or authorized representative who is not licensed as an
  insurance producer is permitted to provide general information about the insurance offered by the travel retailer,
  including a description of the coverage and price, but is not qualified or authorized to answer technical
  questions about the terms and conditions of the insurance offered by the travel retailer or to evaluate the
  adequacy of the customer's existing insurance coverage.
          (3)(4)      A travel retailer's employees or authorized representatives who are not licensed as insurance
  producers may not:
          (a)         evaluate or interpret the technical terms, benefits, and conditions of the offered travel insurance
  coverage;
          (b)         evaluate or provide advice concerning a prospective purchaser's existing insurance coverage;
  or
          (c)         hold themselves out as licensed insurers, licensed producers, or insurance experts.
          (4)(5)      Travel insurance may be provided under an individual policy or under a group or master policy.
          (5)      The commissioner may adopt rules to implement the provisions of this part.
          (6)         A person licensed in property and casualty as an insurance producer is authorized to sell,
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68th Legislature 2023                                                                                              HB 591.1
  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."
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          Section 3. Section 33-17-1404, MCA, is amended to read:
          "33-17-1404.     Responsibility -- enforcement -- penalties. (1) The limited lines travel insurance
  producer is the supervising entity responsible for the acts of the travel retailer and shall use reasonable means
  to ensure compliance by the travel retailer with the provisions of this part.
          (2)      A limited lines travel insurance producer and any travel retailer offering and disseminating
  travel insurance under the limited lines travel insurance producer's license are subject to the applicable unfair
  trade practices provisions of Title 33, chapter 18, including penalty provisions, and to other enforcement
  provisions applicable to insurance producers generally."
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          NEW SECTION. Section 4.          Travel protection plans. (1) Travel protection plans may be offered for
  one price for the combined features that the travel protection plan offers in this state if:
          (a)      the travel protection plan clearly discloses to the consumer, at or prior to the time of purchase,
  that it 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 pricing of each; and
          (b)      the fulfilment materials:
          (i)      describe and delineate the travel insurance, travel assistance services, and cancellation fee
  waivers in the travel protection plan; and
          (ii)     include the travel insurance disclosures and the contact information for persons providing travel
  assistance services and cancellation fee waivers, as applicable.
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          NEW SECTION. Section 5.          Sales practices. (1) All persons offering travel insurance to residents of
  this state are subject to the provisions of the unfair trade practice provisions of Title 33, chapter 18, except as
  otherwise provided in this section. In the event of a conflict between this part and other provisions of Title 33
  regarding the sale and marketing of travel insurance and travel protection plans, the provisions of this part
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68th Legislature 2023                                                                                               HB 591.1
  control.
             (2)    Offering or selling a travel insurance policy that could never result in payment of any claims for
  any insured under the policy is an unfair trade practice under Title 33, chapter 18.
             (3)    The marketing of a travel insurance policy must meet the following requirements:
             (a)    All documents provided to consumers prior to the purchase of travel insurance, including but
  not limited to sales materials, advertising materials, and marketing materials, must be consistent with the travel
  insurance policy itself, including but not limited to forms, endorsements, policies, rate filings, and certificates of
  insurance.
             (b)    For travel insurance policies or certificates that contain pre-existing condition exclusions,
  information and an opportunity to learn more about the pre-existing condition exclusions must be provided any
  time prior to the time of purchase and included in the coverage’s fulfillment materials.
             (c)    (i) The fulfillment materials and the information described in this subsection (3) must be
  provided to a policyholder or certificate holder as soon as practicable following the purchase of a travel
  protection plan. Unless 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:
             (A)    15 days following the date of delivery of the travel protection plan’s fulf