The proposed bill establishes a comprehensive legal framework for the sale of travel insurance in Washington State, amending several sections of the Revised Code of Washington (RCW) and introducing new sections specifically addressing travel insurance. It outlines the applicability of the new regulations, which cover travel insurance sold to residents of the state, while excluding cancellation fee waivers and travel assistance services unless explicitly stated. The bill clarifies definitions related to travel insurance, including terms like "aggregator site," "blanket travel insurance," and "travel protection plans," ensuring that all relevant insurance laws continue to apply unless there is a conflict with the new provisions. Additionally, it sets forth licensing requirements for limited lines travel insurance producers and travel retailers, mandates premium tax payments on travel insurance premiums, and requires clear disclosure of travel protection plan components to consumers.

Furthermore, the bill introduces new provisions regarding the marketing and administration of travel insurance, mandating that marketing materials align with actual policies, particularly concerning preexisting condition exclusions. It grants policyholders a cancellation period for a full refund, prohibits negative option marketing practices, and establishes that marketing blanket travel insurance as free is an unfair trade practice. The bill also includes an insertion that expands the definition of "health care facility" to replace "psychiatric" with "behavioral health" hospitals, and introduces a provision allowing travel insurance to be classified as a type of health plan starting January 1, 2027. Overall, the legislation aims to enhance consumer protection in the travel insurance market while ensuring clarity and compliance in health care delivery and insurance coverage.

Statutes affected:
Original bill: 48.17.060, 48.43.005
Substitute bill: 48.17.060, 48.17.530, 48.17.535, 48.43.005