BILL NUMBER: S6087
SPONSOR: BRESLIN
 
TITLE OF BILL:
An act to amend the insurance law, in relation to enacting the "New York
travel insurance act" regulating the licensing and registration of
limited lines travel insurance producers and travel retailers, and the
sale and marketing of travel insurance and related products
 
PURPOSE:
The purpose of this bill is to regulate the licensing and registration
of limited lines travel insurance producers and travel retailers, as
well as the sale and marketing of travel insurance and related products.
 
SUMMARY OF PROVISIONS:
Section 1 - Established the act title as the "New York travel insurance
act".
Section 2 - Amends subsection (a) of section 1113 of the insurance law.
Section 3 - Amends,section 3435 of the insurance law by adding a new
subsection (e)
Section 4 - Amends section 3452 of the insurance law by adding a new
subsection (e)
Section 5 - Adds article 81 to the insurance law.
8101: Legislative intent establishes that the purpose of article 81 is
to promote the public welfare and create a comprehensive legal framework
for the sale of travel insurance in this state.
8102: Defines terms for Article 81.
8103: Establishes that the superintendent may issue a limited lines
travel insurance producer license to an individual or business that has
filed an application in a form and manner prescribed by the superinten-
dent. Additionally, it outlines limited lines travel insurance produc-
er's duties and operational requirements.
8104: Establishes the circumstances in which a travel insurer shall pay
premium tax.
8105: Establishes conditions under which travel protection plans may be
offered for one price for the combined features that it offers.
8106: Only persons offering travel insurance to residents of this state
are subject to article twenty-four of this chapter. Additionally, it
determines marketing practices for the travel insurance provider.
8107: Provides for travel administrators.
8108: Provides for classification, group plan and eligibility to travel
insurance.
81.09: The superintendent may promulgate regulations to implement the
provisions of this article.
Section 6 - Establishes the effective date.
 
JUSTIFICATION:
This bill seeks to establish a consistent regulatory framework for the
travel insurance industry in New York State. This act would create
uniform definitions, expand and codify the ability to write travel
insurance as a blanket or group product, clarify the payment of premium
taxes, setting out permitted and prohibited sales practices, and gener-
ally reducing regulatory confusion.
Insurance regulation in the United States is managed on a state-by-state
basis. If an insurer wants to sell products to customers in more than
one state, they may encounter additional bureaucracy and expenses to
ensure compliance in all of them. The New York Travel Insurance Act
seeks to put New York's travel insurance regulations in line with over
24 other states that have already adopted a similar framework.
 
LEGISLATIVE HISTORY:
No prior legislative history.
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
This act shall take effect on the ninetieth day after it shall have
become law.

Statutes affected:
S6087: 1113 insurance law, 1113(a) insurance law, 3435 insurance law, 3452 insurance law