BILL NUMBER: S5304
SPONSOR: BAILEY
 
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 - Establishes the act's title as the "New York travel insur-
ance act."
Section 2 - Amends subsection (a) of section 1113 of the insurance law
to define travel insurance by reference to another statute.
Section 3 - Amends section 3435 of the insurance law by adding a new
subsection (e) to address applicability.
Section 4 - Amends section 3452 of the insurance law by adding a new
subsection (e) to address lack of restrictions.
Section 5 - Adds a new article to the insurance law for the New York
travel insurance act.
8101: Legislative intent establishes that the purpose of the new article
is to promote the public welfare and create a comprehensive legal frame-
work for the sale of travel insurance in this state.
8102: Defines terms for the new article.
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 for trav-
el insurance.
8109: The superintendent may promulgate regulations to implement the
provisions of this article.
 
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:
2023-24: S6087 - Referred to Insurance
 
FISCAL IMPLICATIONS:
To be determined.
 
EFFECTIVE DATE:
Ninety days after becoming a law.

Statutes affected:
S5304: 1113 insurance law, 1113(a) insurance law, 3435 insurance law, 3452 insurance law