The proposed bill establishes a comprehensive legal framework for the sale of travel insurance in Washington State, amending existing laws to clarify definitions and regulations. It specifies that the requirements apply to travel insurance sold to residents and outlines the types of coverage included, such as trip cancellation and emergency evacuation. The bill distinguishes travel insurance from cancellation fee waivers and travel assistance services, emphasizing that in case of conflict with existing insurance laws, the new provisions will take precedence. Additionally, it introduces licensing requirements for limited lines travel insurance producers and travel retailers, mandates premium tax payments, and allows for travel protection plans that combine various features, ensuring consumers are informed about the components at the time of purchase.

Moreover, the bill introduces new regulations for marketing, selling, and administering travel insurance, including consistency in marketing materials, mandatory disclosure of preexisting condition exclusions, and prompt provision of fulfillment materials. It prohibits negative option marketing practices and clarifies that travel insurance must be classified under an inland marine line of insurance. Licensing requirements for travel administrators are also established, holding insurers accountable for their actions. The bill empowers the commissioner to adopt necessary rules for implementation and repeals any inconsistent regulations, ultimately aiming to enhance consumer protection in the travel insurance market while ensuring adherence to clear standards and practices. Additionally, the bill amends health care legislation by expanding the definition of "health plan" to include travel insurance, effective January 1, 2027.

Statutes affected:
Original bill: 48.17.060, 48.43.005
Substitute bill: 48.17.060, 48.43.005
Bill as passed Legislature: 48.17.060, 48.43.005
Session law: 48.17.060, 48.43.005